I move: "That the Bill be now read a Second Time."
The European Communities and Swiss Confederation Bill, 2001, is a short, technical Bill, the main purpose of which is to give the force of law in the State, once they are ratified, to seven sectoral agreements which have been signed between the European Union and Switzerland. The Bill was published on 15 November last. It was introduced in the Seanad by the Minister for Foreign Affairs on 21 November 2001, and it passed all stages in the other House on the same day.
The seven agreements deal with the following areas: free movement of persons; air transport; rail and road transport; trade in agricultural products; mutual recognition in relation to conformity assessment; government procurement and scientific and technological co-operation.
These agreements were all signed in Luxembourg on 21 June 1999 and they will enter into force when they are formally ratified or approved by all the parties to them. Switzerland ratified the seven agreements on 16 October 2000, following their approval in May of that year by the Swiss people in a popular referendum. At this stage, my understanding is that all of the EU member states, with the exception of Ireland and Belgium, have completed ratification procedures. I trust that with the approval of this House, Ireland will be able to ratify in the coming days.
While the seven agreements are separate and distinct, they are linked together in the sense that they can only come into force together and they will all come to an end if any one of them is terminated. This was at the insistence of the EU, which felt that the seven agreements satisfied the interests of both sides only when taken and considered together as a complete package.
The Agreement on the Free Movement of Persons differs in a significant way from the other six agreements in that it requires ratification by the fifteen member states of the EU as well as by the European Community and Switzerland. The reason for this is that it deals with matters which fall within the competence of individual member states. The other six agreements require formal ratification only on behalf of the European Community and Switzerland. However, as these include references to various EU directives and regulations which need to be adapted to take account of their application to Switzerland, the European Communities and Swiss Confederation Bill, 2001, will, when enacted, ensure that all the necessary adaptations required to give effect to them are made. The Bill is modelled on the European Communities (Amendment) Act, 1993, which provided for the ratification of the European Economic Area Agreement.
Because of Switzerland's strategic location in Europe, surrounded as it is on all sides by member states of the European Union it is both appropriate and necessary that relations between the EU and Switzerland should be close and harmonious and conducted on a sound legal footing. Such is the express wish and intention of the European Union, its member states and Switzerland. Switzerland is also very close to the European Union in cultural and economic terms. A multilingual country, three of the European Union's official languages are spoken within its borders.
In international relations, Switzerland is a strong supporter of the key role of multilateral organisations, in particular through its participation in the OSCE and the Council of Europe. Like Ireland, Switzerland attaches importance to deepening international co-operation for peacekeeping, conflict prevention and crisis management, and joined the Partnership for Peace even before Ireland did.
Next spring the Swiss people will again vote in a referendum on joining the United Nations. As an active observer in the United Nations and contributor to UN peacekeeping, and indeed as the host to the UN Geneva offices, the Swiss have made a long and honourable contribution to its work. As we in Ireland have shown, small states which have remained outside military alliances have an important contribution to make at all levels of the UN's work. We wish the Swiss people well in their consideration of these issues.
In terms of trade, Switzerland is second only to the US as a market for EU exports. Swiss direct investment in the EU is also both valuable and important, second only to the US, while Switzerland is a major recipient of EU direct investment. Given its geographic location, its economic strength and its cultural affinity with the countries of the EU, I would say that this is only to be expected.
Switzerland is the country in Europe with the highest number of non-national EU residents with a population of over one million and it receives 95% of EU cross-border workers with 150,000 EU citizens crossing the Swiss border to work every morning. Therefore, as the EU's most important European partner, there is an obvious and mutual interest in promoting closer and more formal relations between the EU and Switzerland, for example, through the Agreement on the Free Movement of Persons.
It is a matter for the history books that while Switzerland had participated in the negotiations on the European Economic Area Agreement, the Swiss people subsequently voted in a referendum – as was their right – against participation in that agreement. As a consequence, the European Economic Area, with the accession of Sweden, Finland and Austria to the European Union in 1995, now consists of the 15 member states of the Union, together with Norway, Iceland and Liechtenstein. Another consequence of the referendum in Switzerland rejecting the European Economic Area Agreement was that, in addition to Switzerland not being able to participate in the EEA, its request for accession to the EU, which had been advanced in May 1992, had to be frozen. It remains so to this day, although the Swiss Government retains future EU membership as "a strategic objective" of Government policy.
Bilateral relations between the EU and Switzerland are for now based on a number of existing agreements, including the 1972 Free Trade Agreement, a framework agreement on scientific and technical co-operation and a transit agreement. However, as both the EU and Switzerland recognised the need for a closer formal relationship, in their mutual interests, they proceeded to negotiate the seven additional sectoral agreements signed on 21 June 1999.
When these agreements were being signed, both the EU and Switzerland made joint declarations indicating an interest in negotiating agreements in a number other important areas. Negotiations are now under way on co-operation against fraud, on the environment, co-operation on statistics and on an agreement for the liberalisation of trade in processed agricultural products. Further negotiations in areas, such as trade in services, participation in Community programmes on training, youth and media, on savings taxation and on co-operation in the area of justice and home affairs and on Swiss participation in areas covered by the Schengen Agreement are currently under consideration.
I propose to deal briefly with the seven agreements which are the subject of this Bill, starting with the Agreement on Free Movement of Persons. This agreement will provide broadly for the free movement of persons between the EU and Switzerland. It aims for the granting on a recipro cal basis of the same living, employment and working conditions as those enjoyed by the respective citizens. It covers rights of entry, residence, access to employment, the right of establishment on a self-employed basis, access to education and the right to benefit from reciprocal social security arrangements. It provides for the mutual recognition of educational qualifications and the co-ordination of social security systems. All these rights are based on the principles of non-discrimination by nationality and equality of treatment. The agreement affords Switzerland a transition period to facilitate the liberalisation of its labour market. This agreement is being concluded initially for a period of seven years and will be renewed indefinitely unless it is repudiated by either party.
As far as the social security aspects of this agreement are concerned, Ireland already has a bilateral Social Security Agreement with Switzerland which came into force on 1 July 1999, after the signature of the Free Movement Agreement. The majority of persons covered by the Free Movement Agreement are already covered by the bilateral agreement although the benefits of the EU agreement will be more beneficial as short-term benefits and family benefits are included. The provisions relating to old age benefits are also more beneficial. However, having regard to the level of migration between Ireland and Switzerland, it is considered that the additional costs arising from the social security provisions of the Free Movement Agreement will be minimal. Irish citizens resident in Switzerland will benefit from similar arrangements.
The Agreement on Air Transport provides essentially for the reciprocal liberalisation of aviation, on the basis of previous Community agreements. It covers air traffic rights for journeys between any point in the Community and any point in Switzerland for carriers registered in either party. Two years after the entry into force of the agreement Swiss air carriers will be granted traffic rights between points in different Community countries. Monitoring of compliance with this agreement, especially as regards the implementation of competition law, will be under the responsibility of the Commission and the European Court of Justice. In return, Switzerland will have observer status in the committees assisting the Commission to define the evolution of European air transportation policy. This agreement therefore creates a unified legal regime for air transportation based on strict reciprocity between rights and obligations conferred within the EU and Switzerland.
We welcome this further liberalisation of air transport within Europe with Irish carriers benefiting by being granted greater access to operate air services between Switzerland and the EU. Swiss carriers will be granted reciprocal rights two years later.
While dealing with matters concerning air transport, I should like to take the opportunity of expressing to the Swiss Government and to the Swiss people the deep sympathy of the House following the accident involving a Crossair plane which was just about to land at Zurich Airport, which involved a number of fatalities last Saturday night.
The Agreement on the Carriage of Goods and Passengers by Rail and Road deals, in particular, with the maintenance of the freedom of transit for road vehicles across Switzerland, at reasonable charges. The 28 tonne limit for trucks circulating in Switzerland will be progressively raised to 40 tonnes, the European standard. It provides for the avoidance of traffic diversion from Switzerland into neighbouring countries, the reciprocal liberalisation of bilateral and transit road transport operations, the adoption by Switzerland of legislation equivalent to specified elements of the road and rail transport aquis communitaire, with a timetable for the progressive adoption of Community rules on vehicle weights and dimensions, and compliance by Switzerland with Community rules on state aids to road transport. Liberalisation of transport of both persons and goods, as provided for in this agreement between the European Union and Switzerland is welcome.
The Agreement on Trade in Agricultural Products is expected to improve significantly access for agricultural products to the EU and Swiss markets, respectively, while abolishing tariff and non-tariff barriers to trade according to the principle of reciprocity. A large number of tariff concessions have been granted for plants and flowers, fresh or prepared fruit and vegetables, cheeses and milk products, meat products and wine. The agreement also seeks to facilitate trade through mutual recognition of legislation on plant protection, animal feedstuffs, seeds and organic farming. It includes veterinary rules designed to facilitate trade in live animals and animal products. In the case of live animals the two sides' legislation is deemed to be equivalent and for animal products trade will be based on Community legislation. The agreement also provides that Switzerland will apply the same rules as the Community to imports from third countries.
The proposed agreement will provide increased export opportunities for Ireland over a range of products. The section on trade in wines and sprits which provides for mutual protection of protected names, will afford protection for Irish denominations such as Irish Cream and Irish Whiskey.
The purpose of the Agreement on the Mutual Recognition of Conformity Assessment is to establish mutual recognition of the results of tests of conformity to standards for most industrial products. Both parties will thus recognise reports, certificates, authorisations and labels of certification delivered according to their respective procedures. The effect is that products can be certified by recognised conformity assessment bodies in the European Union and placed on the Swiss market without having to undergo any further approval procedures, and vice versa. This will result in reduced costs and increased efficiency for obtaining product approvals and will facilitate market access. The agreement lists the various sectors to be covered, including machinery, toys, medical devices, telecommunications terminal equipment and a range of others.
The National Standards Authority of Ireland, NSAI, has been notified under EU procedures as a conformity assessment body, CAB, for many of the sectors mentioned in the agreement and NSAI supports agreements such as this which lead to better mutual recognition of certificates of conformity.
The Agreement on Certain Aspects of Government Procurement aims at ensuring harmony between the public procurement regimes of the European Union and Switzerland and to provide for greater reciprocal access to the public procurement markets. The agreement focuses only on certain aspects of public procurement as account has been taken of the already existing agreements in the framework of the WTO government procurement agreement. Overall, an almost complete reciprocal opening of the respective public procurement markets will be achieved.
The agreement on scientific and technological co-operation will associate Switzerland with the EU's Fifth Framework Programme for Research, Technology and Development and the corresponding Fifth Framework Programme of EURATOM. Until now, research bodies established in Switzerland have only been able to participate in these research programmes on a project by project basis and without the possibility of launching a research project of their own. Under this agreement they will be allowed to take part on an equal footing with their EU partners. In addition, research bodies in the EU will in future be able to participate in research programmes and projects in Switzerland. The financial contribution by Switzerland to the budget of the research programme will be based on the ratio of Switzerland's GDP to that of the member states of the European Union. The agreement will allow scientists and researchers in Ireland increased opportunities to co-operate with their Swiss colleagues, opportunities which I sincerely hope they will avail of to the fullest extent. The number of EU research projects with Irish and Swiss involvement stands at about 60 projects.
All seven agreements will be supervised by joint committees, at which decisions will be taken by unanimity. The joint committees will only have decision-making powers if this is expressly stated in a particular agreement. Each party is responsible for the application of the agreement in its own territory.
I turn to the provisions of the Bill. Section 1(1) is a standard feature defining "the Act of 1972" as meaning the European Communities Act, 1972. It lists the formal titles of the seven agreements. Section 1(2) is also a standard provision which will enable the 1972 Act to be read as including any amendments that have been made to that Act between 1972 and 2001.
Section 2 amends section 2 of the European Communities Act, 1972, by inserting a new sub section, after section 2(2) of that Act. The new section provides that from the coming into force of the seven agreements between the EU and Switzerland, their provisions and the Acts to be adopted by any institution established by the agreements will be binding on the State and they will have the force of law in the State. The section of the Bill, when enacted, will enable the European Communities Act, 1972, to be used for the future development of the seven agreements and, depending on the precise terms of any development under the agreement on the free movement of persons, for the future development of that agreement.
Section 3 will have the effect of converting all existing instruments, for instance, EU directives and regulations listed in the seven agreements, which currently only apply to EU member states, to apply to Switzerland. Section 4 is a standard feature which gives the short title to the Bill, the collective citation, and provides for a commencement order to be made by the Minister for Foreign Affairs.
When these agreements enter into force, they will constitute an important step in the development of formal relations between the EU and Switzerland and will form the basis for the future development of relations to the mutual benefit of both sides. I hope Ireland will use the provisions of the agreements to promote more bilateral contacts. The agreements will certainly provide opportunities to do so. I commend the Bill to the House and I look forward to Deputies' contributions.
