I move:
That Dáil Éireann approves the terms of the Supplementary Protocol to the Association Agreement between the European Economic Community and Turkey consequent on the accession of new member States to the Community, signed on 30 June, 1973, and the terms of the related Supplementary Internal Financial Agreement concerning the aforesaid Supplementary Protocol signed on 30 June, 1973, which have been laid before the Dáil.
Ireland, Britain, and Denmark undertook under article 108 of the Accession Treaty to apply the provisions of agreements of the Communities with certain third countries including Turkey, and this motion is before the Dáil today in order to enable Ireland to comply with her legal obligations under the article. The evolution of the association between the Community and Turkey is basically one of three phases: an original agreement, an additional protocol and further financial protocol and, finally, the supplementary protocols consequent on the accession of new member states to the Community.
The purpose of the original agreement of association with Turkey, which was signed in 1963, was "to ensure a continuous improvement in living conditions in Turkey and in the European Economic Community through accelerated economic progress and the harmonious expansion of trade, and to reduce the disparity between the Turkish economy and the economies of the member states of the Community". The eventual accession of Turkey to the Communities was envisaged in article 28: but in fact, Turkey has not applied for membership.
The agreement provided that the association would be implemented in three stages: a preparatory stage of at least four years' duration to enable Turkey to strengthen its economy; a transitional stage during which a customs union would be established; and a final stage entailing the intensification of the co-ordination of the economic policies of the parties of the agreement. In November, 1970, the Community and Turkey signed an additional protocol to the association agreement, a further financial protocol and an agreement on products within the province of the European Coal and Steel Community. The additional protocol acknowledged the completion of the first "preparatory stage" and instituted the second "transitional stage" of the association agreement.
The additional protocol, which like the further financial protocol was ratified in December, 1972, and came into force on 1st January, 1973, provides for:
(i) total customs exemption for all Turkish industrial goods exported to the Community with partial exemptions only for certain textile and petroleum products,
(ii) considerable and increasing preferences for Turkish agricultural products exported to the Community, with full free movement planned at the end of a 22-year period, during which the Turkish agricultural policy would be aligned to that of the Community, and
(iii) the dismantling by Turkey of its tariffs against Community exports over a period of 12 years or 22 years in the case of certain sensitive products. Within that period Turkey will gradually apply the Community customs tariff.
Certain provisions are also included in favour of Turkish migrants to the Community and it is envisaged therein that free movement of labour will be achieved between 1985 and 1995.
The financial protocol provided for financial assistance from the Community in the form of special loans for Turkey distributed by the European Investment Bank acting on the authority of the member states. The European Coal and Steel Community Agreement applies the trade provisions to products within the province of the European Coal and Steel Community.
Negotiations took place between the nine member states of the European Community and Turkey during the period January, 1972, to May, 1973. Agreement was reached in these negotiations on the texts of two supplementary protocols, one adapting the provisions of the association agreement and the other adapting the provisions of the agreement on products within the province of the European Coal and Steel Community to take account of the enlargement of the Community. At the same time the member states concluded among themselves a supplementary internal financial agreement which sets out the conditions governing the provision of financial aid to Turkey by the Community. These supplementary protocols and the supplementary internal financial agreement were signed on 30th June, 1973. In order that the implementation of the main commercial provisions might not be delayed pending ratification of the protocols, an "interim agreement" was also signed on that date bringing the trade provisions into force with effect from 1st January, 1974.
The full texts of the supplementary protocols and the supplementary internal financial agreement are available to Deputies, but I will briefly describe the main provisions:
Title I of the supplementary protocol adapting the provisions of the association agreement provides for certain "adaptation measures". These involve alteration of the basis of certain calculations to take account of the enlargement of the Community. It also provides for increases in the annual level of tariff quotas in favour of Turkey in the case of certain sensitive products. In addition, under article 8, the amount of 195 million units of account to be provided in the form of loans from the European Investment Bank is increased to 242 million units of account.
Title II is entitled "Transitional Measures" and sets out a timetable for the alignment of Customs duties by the new member states on the duties provided for in the association agreement.
Title III concerns the final provisions and sets out the procedures for ratification and entry into force of the supplementary protocol.
There is also included a final act in which the contracting parties adopt a number of joint declarations, the most important being on the industrialisation of Turkey.
The supplementary protocol on products within the province of the European Coal and Steel Community, which is not included in the motion before the Dáil but which it is hoped to ratify at the same time, provides for the extension of the provisions of the agreement on products within the province of the European Coal and Steel Community to the three new member states. This protocol does not involve a charge on public funds.
The supplementary internal financial agreement defines the internal conditions for the application of the financial provisions of the supplementary protocol. Article 2 of the supplementary internal financial agreement apportions the 242 million units of account among the nine member states. Ireland's share amounts to 1 million units of account. It is envisaged that this sum will be disbursed over a period extending to 1979.
Assuming ratification of the necessary instruments by all parties by July, the European Investment Bank estimates the rate of call-up of Ireland's one million units of account in the following manner:
In 1976 we would pay either .15 or 21—the fraction has yet to be worked out. In 1977 and 1978 we would pay .32 of the total sum. In 1979 we would pay either .21 or .15. depending on whatever fraction of our contribution was called up in 1976.
I commend this motion to the Dáil.