John Bruton
Question:8 Mr. J. Bruton asked the Minister for Industry and Commerce his views on whether the US-Canada Trade Agreement is compatible with the GATT system in light of the recent GATT working party report to the GATT on the subject.
Ceisteanna—Questions Oral Answers. - US-Canada Trade Agreement.
Paul McGrath
Question:13 Mr. McGrath asked the Minister for Industry and Commerce his views on whether the US-Canada Trade Agreement is compatible with the GATT system in light of a recent GATT working party report to the GATT on the subject.
Michael Finucane
Question:19 Mr. Finucane asked the Minister for Industry and Commerce his views on whether the US-Canada Trade Agreement is compatible with the GATT system in light of a recent GATT working party report to the GATT on the subject.
Bernard Allen
Question:21 Mr. Allen asked the Minister for Industry and Commerce his views on whether the US-Canada Trade Agreement is compatible with the GATT system in light of a recent GATT working party report to the GATT on the subject.
P. J. Sheehan
Question:29 Mr. Sheehan asked the Minister for Industry and Commerce his views on whether the US-Canada Trade Agreement is compatible with the GATT system in light of a recent GATT working party report to the GATT on the subject.
I propose to take Questions Nos. 8, 13, 19, 21 and 29 together. At the outset, I should like to say that I welcome the US-Canada Free Trade Agreement. We in Europe, through the establishment of the European Economic Community itself and now through the greater European Economic area involving our neighbouring EFTA countries, have first-hand experience of the political and economic benefits which flow from such arrangements. Such benefits often accrue, not only to the participants themselves but also to third countries who can take advantage of the increased prosperity of the region. By the same token, I welcome the current negotiations between the US and Mexico to conclude a similar agreement.
That said, there are some grounds for reservations about the US-Canada Free Trade Agreement. The GATT Working Party established to examine the Free Trade Agreement took the view that the agreement may not be fully consistent with the provisions of GATT. For example, while third country exporters, as a whole, may benefit in a general way from increased wealth in the region, particular companies could lose market share, because under the terms of the agreement US and Canadian exporters will now have preferential access to each others markets.
Another concern was that the agreement might, in some respects, be overtaken by the Uruguay Round results and in recognition of this both the US and Canada have undertaken to review it after the Uruguay Round negotiations have been concluded.
Additionally, the GATT Working Party propose to review the agreement periodically, the first such review to take place in 1993.
As a contracting party to GATT, Ireland will continue to support all steps to see the conclusions of the working party followed through.
Will the Minister say whether any Irish exporters to the United States or Canada could be adversely affected by the potentially trade distorting problems referred to by him in his reply?
I do not have a note of the names of particular companies who see themselves as being disadvantaged. As far as I am aware, my Department have not received representations from individual companies in regard to this. Nonetheless, we have some concerns in regard to the terms of the agreement. For that reason, in conjunction with our Community partners, we have been urging the Commission in particular to draw the attention of the GATT headquarters to the agreement and to monitor it carefully.
Has the Minister made any representations to the United States or the Canadian ambassadors — or through other diplomatic channels — to the authorities of those two countries in regard to any aspects of the agreement which are potentially adverse to Irish interests?
I have not personally made such representations but our views have certainly been conveyed to the US and Canadian negotiators at the GATT headquarters.