I move:
That Dáil Éireann approves the International Agreement on Jute and Jute Products, 1982, which has been laid before the Dáil.
Dáil approval of the terms of this agreement is necessary in accordance with Article 29.5.2º of the Constitution which stipulates that "the State shall not be bound by an International Agreement involving a charge upon public funds unless the terms of the Agreement shall have been approved by Dáil Éireann".
An explanatory note has been prepared and circulated to Deputies. It outlines the provisions of the agreement and covers the cost of Irish participation.
The International Agreement on Jute and Jute Products, 1982, was concluded under the auspices of the United Nations Conference on Trade and Development (UNCTAD) at the United Nations Conference on Jute and Jute Products held in Geneva in September 1982. Sixty-two countries, representing six exporting countries and 56 importing countries, including Ireland, participated. The agreement is open for signature at United Nations Headquarters until 30 June 1983 by Governments invited to the United Nations Conference on Jute and Jute Products. The agreement was signed by the Community and member states on 6 June.
After signing the agreement Governments may ratify, accept or approve it by the deposit of an instrument to this effect with the Secretary General of the United Nations.
The agreement establishes the International Jute Organisation to administer the provisions of the agreement and to supervise its operations. Members will be required to make an annual contribution to the administrative budget of the organisation. Because of the variables involved, it is not possible at this stage to assess accurately Ireland's contribution, but based on the experience of payments to other commodity agreements our annual contribution is estimated to be of the order of £2,000.
The main objectives of the agreement are to improve structural conditions in the jute market, to enhance the competitiveness of jute and jute products, to improve the quality of such products for the benefit of importing and exporting countries and to develop production and exports and imports of jute and jute products so as to meet the requirements of world supply and demand. These objectives will be met by means of projects of research and development, market promotion and cost reduction. The financing of projects will take place through a special account which will be financed through international and regional financial institutions and voluntary contributions. Such projects will be sponsored by the organisation for loan financing only where a member or members have voluntarily assumed full obligations and responsibility for such loans and no member shall be responsible by reason of its membership in the organisation for any liability arising from borrowing or lending by any other member in connection with projects.
Ireland's main economic interest in jute relates to its use in the carpet industry. Our imports of jute yarn and jute products in 1982 amounted to 3,700 metric tonnes valued at £3 million, while our exports of carpets containing jute were valued at approximately £20 million. The agreement is intended to improve the quality and stabilise the supply of an important raw material for this sector of Irish industry where approximately 2,000 people are employed.
Membership of the International Agreement on Jute and Jute Products, 1982, will afford Ireland the opportunity to demonstrate its willingness to support international measures which help to improve the economic conditions of developing countries. This reaffirmation of the importance which Ireland attaches to reducing the serious economic imbalance between developed and developing countries is in conformity with UNC-TAD's Integrated Programme for Commodities and is particularly opportune at the present time when Ireland is participating in the Sixth Session of the United Nations Conference on Trade and Development in Belgrade.