Vol. 435 No. 2
1 Mr. Deenihan asked the Minister for Tourism and Trade the role that he has played to date in the GATT negotiations as Minister responsible for this area; if his Department has carried out an in depth analysis of the effects of the present proposals on Irish industry, especially agriculture and the textile industry; and if he will make a statement on the matter.
14 Mr. O'Malley asked the Minister for Tourism and Trade if he will make a statement on the attitude which the Government will take towards the conclusion of the Uraguay Round of the GATT; if Ireland will seek to impose a veto at the Council of Ministers if there is no substantial renegotiation of the Blair House Agreement; and if he has satisfied himself that the Government has the legal competence under the Treaty of Rome to veto the Community's final position in the Uruguay Round if it should decide to take this course.
15 Mr. Rabbitte asked the Minister for Tourism and Trade his assessment of the current prospects for a successful conclusion of the GATT talks, especially in view of the recent decision of the EC to seek some reinterpretation of certain aspects of the Blair House agreement; the implications for Irish exports of a failure to finalise agreement; and if he will make a statement on the matter.
27 Miss Harney asked the Minister for Tourism and Trade the steps, if any, the Government has taken on a bilateral and multilateral basis to promote Ireland's vital interest in the current GATT round of negotiations.
36 Mr. J. Bruton asked the Minister for Tourism and Trade if the Government has organised bilateral meetings with other states in order to advance Ireland's interests under a new GATT agreement; and if he will make a statement on the matter.
84 Mr. Broughan asked the Minister for Tourism and Trade if the GATT agreement will be ratified by 10 December 1993; if he will give an estimate of the overall negative impact on Irish trade in 1994 if the GATT deal is not ratified; and if he will make a statement on the matter.
I propose to take Questions Nos. 1, 14, 15, 27, 36 and 84 together.
The Government is fully committed to a successful conclusion to the Uruguay Round of GATT negotiations by 15 December next and to the achievement of a global and balanced agreement. The Government has serious concerns regarding the terms of the so-called Blair House Agreement and in relation to certain elements of the textiles proposals and would wish to see these concerns taken account of in the final GATT Agreement so as to minimise the negative effects of any such agreement on these sectors.
Since taking up office the Government, at ministerial and at official level, has undertaken the widest possible range of bilateral contacts with other countries to promote Ireland's interests in the context of the negotiations and to make them fully aware of our particular concerns. These contacts have been with member states of the European Community and with other contracting parties to the GATT.
I, as the Minister with overall responsibility for Ireland's input into the negotiations at EC level, have participated in EC ministerial discussions on the GATT negotiations and have undertaken bilateral contact with Community colleagues and others to highlight Ireland's particular concerns.
As a small open economy exporting over 70 per cent of its production, Ireland would benefit considerably from a stable world trade environment. The conclusion of a global and balanced Uruguay Round agreement would serve to create such an environment and would give a much needed boost to the world economy generally.
If the negotiations fail the most likely scenario would be an increase in protectionism, in unfair trading practices and a proliferation of trade disputes. This would result in a further decline in the world economy with a very adverse effect on world trade which would undermine Ireland's export growth potential with the inevitable negative impact on employment.
As the GATT negotiations are ongoing, it is not possible at this juncture to say what the attitude of the Government will be to any final agreement. It will, of course, depend on the overall globability and balance of any such agreement.
I can assure the Deputies that I shall continue to put forward our specific concerns in all possible fora and make every effort to ensure that the overall balance of any final agreement will be to Ireland's benefit.
I am disappointed that the Minister did not answer the question I asked. I asked if his Department carried out an in-depth analysis of the potential loss of jobs in industry, particularly in the agriculture and textile industries, following the successful completion of the GATT negotiations. Is the Minister aware that this year we have already lost 2,000 jobs in the textile and clothing industry, an industry which employs up to 19,000 people and earns approximately £670 million? Has the Department looked seriously at and quantified the effects of the GATT proposals on this industry?
It must be remembered there are over 100 contracting parties to the GATT. It should also be emphasised that whereas in the recent past the emphasis was on agriculture, it is only fair to say that over 70 per cent of the GATT agreement relates to nonagricultural items. As Minister I have asked an outside expert group to conduct a consultancy study on the likely impact of a GATT agreement based on what we know over the past couple of months. This agreement has not yet been published but in the near future we will be bringing it before the House and it will be published.
It must be remembered that in any agreement not all sectors will have equal benefits. There will be pluses and minuses, but without any shadow of doubt the successful conclusion of a GATT agreement will be in our overall interest. We are an exporting country and are totally reliant on exports. Any liberalisation of world trade must per se be to Ireland's benefit. However, the agreement must be balanced. We have expressed in all fora — in the EC and to Commissioner Brittan, the Commissioner with responsibility for negotiating on behalf of the Commission — our various concerns not alone in agriculture but in all other areas.
At this stage I cannot say if the GATT agreement will be concluded by the middle of December but every member state would like to see the GATT agreement concluded. It must be balanced and that has been the Irish position all along.
Is the Minister aware that Sir Leon Brittan indicated in a statement published in one of the national newspapers that he expected there would be an agreement by 15 December and that the agricultural arrangements would be accepted? In view of the poor penetration of Irish agri-food products of the main EC markets will he suggest measures to the exporters of Irish agri-products to boost our efforts in order to compete with the increasing competition that will arise from opening up EC markets to others, especially to New Zealand?
I wish to clarify a point. Vice-President Leon Brittan is the Commissioner charged by the member states to negotiate on behalf of the Commission. His remit is given to him by member states. He is there as our negotiator and he brings the views of the twelve member states to the GATT negotiations. He is not a free agent in his own right. He is there on behalf of the member states, so his remit is that given to him by the member states. He attends meetings at least once a month in Brussels or Luxembourg and he reports back on the up-to-date situation.
With regard to the other matter the Deputy raises, the establishment of markets for agri-food products, my colleague, the Minister for Agriculture, Food and Forestry, Deputy Joe Walsh, will bring forward a Bill shortly setting up An Bord Bia, which will deal with the food processing industry. It is intended that, together with An Bord Tráchtála, which is under my remit, and the proposed Bord Bia, the growth in Irish agri-food produce, which has been colossal over the past number of years, will continue to grow in future.
