Dáil Éireann debate -
Tuesday, 31 Jan 1995

Vol. 448 No. 3

Written Answers. - Impact of GATT.

Seamus Kirk

Question:

188 Mr. Kirk asked the Minister for Agriculture, Food and Forestry his Department's projections for the impact of GATT on the Irish farm sector for the next five to seven years; and if he will make a statement on the matter. [1890/95]

Minister for Agriculture, Food and Forestry (Mr. Yates)

The precise impact of the GATT Agreement on Irish agriculture will depend on the levels of output and consumption and the various factors which affect both of these, in the European Union and in the rest of the world, all of which developments are not susceptible to accurate forecasting. However, based on current trends. Ireland should not face any undue difficulties arising out of the GATT commitments affecting the Irish agriculture and food sectors.

The beef market in the EU is currently strong and intervention stocks are nearly completely eliminated. While some difficulties may arise towards the end of the six year period of the agreement, it is expected that any such difficulties will be dealt with adequately under existing market mechanisms. The outlook for the pigmeat and poultrymeat sectors, where the Union is facing reduced subsidised export possibilities from the outset of the agreement, is more problematic. It is anticipated, however, that the continuing increase in the consumption of these products, together with the possibility of unsubsidised exports to certain destinations, should help to overcome difficulties in these areas. Nevertheless, the knock on effect on relative feed grain prices arising from the impact of CAP reform in the cereals sector will, unless adjustments to EU arrangements are made, add to competitive pressure in these sectors. I will be pressing the Commission to propose such adjustments.

In regard simply to the GATT commitments in the cereals sector, the Commission is confident that further restrictive measures will not be required. The impact on the sheepmeat sector will not be significant although it will be important to ensure that imports continue along traditional trading lines. In the milk sector there is no reason to believe that any action beyond that provided under CAP reform will be required to meet GATT commitments.

Overall, the GATT commitments should not have a major adverse impact on the sectors of main interest to Ireland nor necessitate additional adjustments to the CAP. Should additional measures be necessary, however, Ireland has secured commitments in the Council that such measures would be shared out fairly, taking account of the circumstances of certain categories of producers and of the most affected regions. In addition, the Commission has undertaken to monitor the effect of export restrictions and increased access in relevant sectors, and, where appropriate, to make proposals to maintain competitive production capacities and market stability. The Deputy can be assured that I will monitor the situation in the different markets very closely and that I will, where necessary, call upon the Commission to take corrective action to protect the position of the Irish agriculture and food sectors.