Emmet Stagg
Question:27 Mr. Stagg asked the Minister for Agriculture and Food the implications for Irish milk producers and cereal producers of the addition of East Germany to the EC; and if he will make a statement on the matter.
Written Answers. - Implications for Agriculture of Eastern European Developments.
Mervyn Taylor
Question:52 Mr. Taylor asked the Minister for Agriculture and Food if he will outline his attitude to the potential unification of Germany; the possible implications of unification for Irish agriculture; and if he will make a statement on the matter.
I propose to take Questions Nos. 27 and 52 together.
It is difficult at this stage to speculate on the implications for trade in agricultural products of developments in Eastern Europe and in East Germany in particular. In the short term at least the opening up of markets in central and east Europe should increase opportunities for trade from Ireland and other Community member states and for technology transfers. Trade relations in the longer term will depend on the degree to which the agricultural economies of these countries develop.
The Federal Republic has provided a valuable outlet for Irish agricultural products in recent years and, for instance, is now our second largest dairy export market in the Community after the United Kingdom. I would expect that our experience and success in the Federal Republic will enable us take advantage of any opportunities to expand sales to East Germany, although trade opportunities with that country may be less than with other countries in the region.
Outside of the trade issues to which I have already referred, the implications of German unification for Irish agriculture are obviously tied up with the application of the Common Agricultural Policy to a larger Germany. Beyond saying that an expanded FEOGA budget would be needed in that eventuality it is too soon to speculate on what other changes might be required.