Vol. 414 No. 9
16 Mr. J. Bruton asked the Minister for Industry and Commerce his views on the proposals made in the current GATT round to phase out the current multifibre arrangement; and the implications of such phasing out for employment in the Irish textile and clothing industries.
18 Mr. Creed asked the Minister for Industry and Commerce his views on proposals made in the current GATT round to phase out the current multifibre arrangement; and the implications of such phasing out for employment in the Irish textile and clothing industries.
20 Mr. G. Reynolds asked the Minister for Industry and Commerce his views on the proposals made in the current GATT round to phase out the current multifibre arrangement; and the implications of such phasing out for employment in the Irish textile and clothing industries.
30 Mr. Hogan asked the Minister for Industry and Commerce his views on the proposals made in the current GATT round to phase out the current multifibre arrangement; and the implications of such phasing out for employment in the Irish textile and clothing industries.
31 Mr. Taylor asked the Minister for Industry and Commerce if he will make a statement regarding prospects for the textile industry, indicating the likely effects on the industry from the GATT negotiations; whether he has received a submission from the CII Apparel Industries Federation outlining the prospects for the industry; and if he will outline his response to the Federations submission.
36 Mrs. T. Ahearn asked the Minister for Industry and Commerce his views on the proposals made in the current GATT round to phase out the current multifibre arrangement; and the implications of such phasing out for employment in the Irish textile and clothing industries.
I propose to take Questions Nos. 16, 18, 20, 30, 31, and 36 together.
The agenda for the Uruguay Round of multilateral trade negotiations agreed by Minister in Punta Del Este in 1986, includes, among 15 specific negotiating objectives, the aim of formulating modalities which would permit the eventual integration of trade in clothing and textiles into GATT on the basis of strengthened GATT rules and disciplines. After the initial four years of negotiations, during which all parties, including the EC, brought forward proposals, the chairman of the GATT Textiles Negotiating Group submitted a draft compromise for negotiation at the GATT ministerial meeting in December 1990 which left a number of key issues open. As the GATT negotiations broke down this proposal is still on the table.
The main elements of the EC position, which was fully supported by Ireland, which were included in the chairman's compromise proposal, can be summarised as follows: (i) the MFA would be integrated into GATT or phased out over a period of time to be negotiated; (ii) the integration would be in three phases with a percentage, to be negotiated, of trade in textile integrated in each phase; (iii) the starting point would be existing restrictions, to be defined; and extent to which GATT rules and disciplines have been strengthened would be taken into account.
Obviously the important issues as far as Ireland is concerned are the duration of the integration or phase out, and the way in which restrictions are phased out. It is important that as far as possible the less sensitive products are liberalised at the beginning and the very sensitive products towards the end. As negotiations are on-going it is not possible to be specific about the effect on employment in the sector at this stage. If the phase out were undertaken too rapidly the impact on employment would be significant both here and in the Community generally. I can assure Deputies that I will be making every effort to ensure that this is not the case.
My Department have had ongoing contacts with both the Apparel Industries Federation and the Irish Textiles Federation as well as with trade union interests in relations to the negotiations. Their views have been taken into account in the formulation of both industrial policy and of our input into EC trade policy for the sector. I have also received the most recent AIF submission, to which Deputy Taylor refers, and I am currently examining it in the context of the on-going developments at both EC and GATT levels in relation to the future of the sector in Ireland and the EC.
Would the Minister bear in mind the importance of employment in the textile industry, although it has been declining greatly in the past 20 years? After agriculture, textiles is the second largest employer in the country. I hope the Minister will bear this in mind during the negotiations.
I am very conscious of that and I have had a number of discussions specifically with the Portuguese Minister for Trade. I visited him in Lisbon about a month ago to discuss that matter among other matters. That matter is, of course, of special importance to the Portuguese. We find ourselves in agreement with many aspects of the Portuguese attitude on this difficulty, which they have constantly brought to the attention of the Commission and to the GATT negotiations.
Did the CII apparel industry fedration in the course of their submission call on the Minister to submit a detailed plan to Brussels on the textile industry pointing out the particular sensitivities and needs in Ireland? Does the Minister intend to make that submission to Brussels in accordance with that request and when might that be done?
We are constantly making submissions to the Commission on this matter and they are well aware of our views. We represent and convey the views of the industry from time to time as they are conveyed to us. The authorities in Brussels are well aware of the sensitivities and difficulties of this sector.
