James Leonard
Question:196 Mr. Leonard asked the Minister for Tourism and Trade if he will make a statement on the proposal to establish Northern Ireland and the Border countries as a free trade zone to stimulate the local economy. [11310/97]
Written Answers. - Free Trade Zone.
I assume that the Deputy is referring to a proposal, supported by a number of members of the US Congress, to eliminate or substantially reduce the tariffs applied to exports to the US from Northern Ireland and the Border countries.
As I have indicated previously in relation to this matter, a major difficulty for those behind the proposal, which is not supported by the US administration, is that the establishment of the proposed free trade zone is not simply a matter of Bills being passed by the US Congress. Ireland and the United States are both bound by international agreements governing the regulation of trade. Any special tariff arrangements, over and above the current GATT agreements, would require the approval of both the European Union and the World Trade Organisation. As regards the EU, in particular, it is most unlikely that the Commission or the member states would approve an arrangement involving a significant derogation from the principles of the Single Market and the Common Commercial Policy.