Seanad Éireann debate -
Wednesday, 4 Dec 1996

Vol. 149 No. 11

Adjournment Matters. - Free Entry of Irish Goods to US.

Mr. McGowan

I welcome the Minister for Tourism and Trade to the House. I appreciate him taking the motion as he could have sent a Minister of State.

I hope the Minister will accept the sincerity of the motion, which is not a political one. It has the widespread consensus of all the political parties in the north west of Ireland. I ask the Minister to give his support to the Bill currently before the United States Congress — Reference 104, 6 June, 1996 (HR 3599) — sponsored by Congressmen Manton, King, Gilman, Walsh and Kennedy, which will allow goods produced and manufactured in Northern Ireland and certain counties in the Republic of Ireland free entry to the United States for a ten year period, a trade measure which will help to create jobs here in areas of high unemployment.

The Minister represents an area with all the difficulties I believe are covered in this motion. He could not be a successful public representative in the west if his knowledge was not equal, if not better, than that of a representative from the Border counties. Last June I travelled to the US with a group of people. Having lobbied the Congressmen mentioned and a number of others, I believe there is a favourable climate in the US for the introduction of this legislation. That is why the US Congressmen have taken the initiative.

During the canvassing and contact with the Congressmen, we received a strong indication we were on the right course. Many of them indicated that the assistance the United States will give in the future may not always be financial. Many of the Congressmen, including Congressman Joe Kennedy, believe foreign aid from the United States will have to be restricted. He sees there are many areas of high deprivation in need of financial support within the US. He believes we are on the right track and that the proposal will have widespread support in the US. The legislation went to the House Ways and Means Committee in Congress, was adopted and is currently with Congress. When the House sits in January, it will be brought before it again. It has also been introduced in the Senate. We hope that the legislation, as proposed in both Congress and the Senate, will be passed. We also hope the Minister will give it his strong support in Ireland.

However much I respect them, the people who write the Minister's response may encourage him to refuse the proposal and point out the different problems and the reasons we could not accept it. I do not believe any of those reasons is valid. A free trade relationship between the US, Northern Ireland and parts of the Republic of Ireland would mean that goods manufactured and all crops grown, including finished food products, would enter the US duty free. Any concern that this legislation would flood Ireland or the EU with US goods is incorrect. The legislation would be bilateral in so far as the goods would only have an advantage to the Irish producer.

There will be opposition from some sections in Europe but we must understand there are various forms of trade and favoured status in Europe. The Minister is aware of all the different areas where there are trade advantages. The free trade relationship would be modelled on the Gaza/West Bank Free Trade Act that was passed by Congress and signed by President Clinton in October. This bill expanded an already existing free trade relationship between Israel and the US. We are not breaking new ground by requesting that the Minister support this proposal.

Yesterday in the Dáil, Deputy O'Hanlon asked a parliamentary question on this matter. The Minister for Enterprise and Employment, Deputy Richard Bruton, replied:

Despite the best efforts of the IDA, the Border counties, with the exception of County Louth, have not attracted new IDA assisted investment in recent years. Any recent new jobs created in overseas companies in Counties Cavan and Monaghan are as a result of developments in existing companies which have increased employment levels.

Those of us who represent Border counties and the west are obliged to be seen to be making a case. We are approaching crisis point. I am certain the Minister and those of us who represent the Border counties and the west will find a common ground when it is proposed to take Ireland out of Objective 1; I am certain the Minister agrees the west and the Border counties are not ready for that. The standard of living in those areas is not as high as in other parts of the country.

Statements are made in Europe every day that our economy is terrific and that we are about to be taken out of Objective 1. This will present a problem. The Minister will be seen to be taking the case on behalf of the west, and we will be working on behalf of the north-west. There is no conflict here. I ask the Minister to support this legislation. His support will be a tremendous help and encouragement. Whether we meet opposition from the British Government or certain sections in Europe, I believe we will be able to tell those who oppose the legislation that certain areas in the Border counties have already been identified as deserving INTERREG or peace and reconciliation funding. The areas marked out for special funding have been already agreed.

The Minister is fully aware that there is not sufficient funding or investment in tourism in the west and in the Border counties. He knows there are small numbers of big players who are developing the tourism industry and small operators must compete against them and against the funding that is available across the Border. The economy of the west and the Border counties should be treated seriously by every Government.

I ask the Minister to support this legislation. This is not a political issue and his support for the legislation would be of tremendous value. I am confident the Minister understands the need for it.

Minister for Tourism and Trade (Mr. E. Kenny)

A Chathaoirligh, ba mhaith liom comhgairdeachas a dhéanamh leat as ucht an oifig nua atá faighte agat. Arising from the unfortunate and tragic loss of the previous Cathaoirleach, Senator Liam Naughten, you are to be commended for the high honour for which you have been chosen. I am sure you will fulfil your role with integrity and honour in keeping with your family's contribution to politics over almost a century.

I thank Senator McGowan for raising this matter. I have no difficulty in replying to the matter. As regards the Senator's comments in respect of tourism development facilities, I will send him details of investment in this area on the southern side of the Border from the various funds, including the European Regional Development Fund programme and the soft loan scheme being made available from the European Union for the development of such facilities.

There are a number of matters concerning the issue before us that need to be clarified. As I have made clear on previous occasions, I fully understand the good intentions behind this proposal to eliminate or substantially reduce the duty applied to exports to the United States from Northern Ireland and the Border counties. It is further evidence of the enormous goodwill which exists towards Ireland in US political circles and I am happy to place on the record my appreciation for their interest in and concern for economic development in the Border counties. However, it is important to clarify a number of critical points relating to this proposal.

First, I understand that the relevant Bills which were introduced in the US Senate and the House of Representatives earlier this year have lapsed as a result of the ending of that Session of Congress prior to the recent elections. They may or may not be reintroduced. I also understand that this initiative does not, as yet, have the backing of President Clinton or his Administration. Moreover, the establishment of this 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. The adoption of this proposal would require additional preferential access arrangements for Irish exports over and above the current GATT agreements. Ultimately, any special tariff arrangements would also require approval by both the European Union and the World Trade Organisation. It would be more than optimistic to assume EU agreement to preferential tariff arrangements for one region of Ireland in the context of a European Union committed to the Single Market and a level playing field for all member states. That is why we are attending the first ministerial conference on the World Trade Organisation in Singapore. We are holding the line, in a political sense, for liberalisation of the market, further global trade and the reduction of tariffs, as adopted by the EU. One could reasonably expect many of our EU partners, particularly in countries which are poorer than Ireland, to argue that there are other European regions with even greater economic development needs.

The creation of a free-trade zone would also require the introduction of a separate customs territory and customs border within this jurisdiction. This would be required to ensure that goods produced in other parts of this State were excluded from the proposed preferential tariff treatment at a time when our emphasis is on dismantling barriers within this island.

I am conscious that those proposing this idea are motivated by a sincere desire to contribute to the economic well-being of the Border counties. Furthermore, the United States is an important economic partner and we all support the strengthening and deepening of our economic links. While it would be unusual for a Minister in one country to indicate support or otherwise for proposals under consideration in the legislature of another country, the Senator will understand from my remarks that I can foresee serious obstacles to the progress of this proposal.

I have no doubt that the Border counties have suffered economically because of the impact of violence in Northern Ireland. Indeed, it is as a direct result of their situation that the Border counties receive special assistance and attention through the International Fund for Ireland and the special EU Programme for Peace and Reconciliation together with funding provided under wider EU programmes such as INTERREG. In addition, the US Administration has specifically recognised the needs of the Border counties in the context of its economic activities in support of the peace process.

This programme of economic co-operation with the US began with the appointment by President Clinton in December 1994 of Senator George Mitchell as his special economic advisor on Ireland. This was followed by the White House conference on trade and investment in May 1995 which was a major and very welcome demonstration of US engagement at the highest level. The conference provided an opportunity for one-to-one networking by Irish and US business people and for exploring avenues for potential co-operation such as joint ventures and other commercial link-ups.

I had the opportunity of attending the Pittsburgh conference on trade and investment in Northern Ireland and the Border counties in October. This was a follow-up to the White House conference on trade and investment with the aim of developing further the areas of potential economic co-operation identified at last year's conference. Some 50 Irish companies from Northern Ireland and the Border counties attended and participated in at least 400 matchmaking meetings with representatives from 125 US companies. A number of these companies agreed contracts with their US counterparts and others are and will be following up closely on opportunities identified at the conference in the weeks ahead.

I have no doubt that the attention being given by the US Department of Commerce and by President Clinton's Administration to developing trade and investment ties with the Border counties will lead to significant economic benefits for the region. I assure the House that my Department and the agencies for which I have responsibility, including An Bord Tráchtála and Bord Fáilte, will continue to co-operate closely with the Department of Commerce in facilitating this important work.

I thank Senator McGowan for raising this matter out of a genuine concern and understanding for the development of this region but I am sure he appreciates the difficulties and obstacles that would be placed in the way of such development. One must wait and see whether these Bills are reintroduced in Congress and the House of Representatives and if so what level of support they will attract there.

I would be happy to liaise with Senator McGowan and the Seanad at any time to keep them updated on general economic development within the Border areas or specifically in relation to other questions arising from this.

Mr. McGowan

I thank the Minister. I understand any negative part of the response is based on the restrictions the Minister has indicated but I can assure him that the Bill will be reintroduced in both Houses in January and I am confident that it will be approved by the US Congress and Senate. I hope the Minister will closely monitor the progress of the Bill and that he will find it possible to support it.

An Cathaoirleach

I am sure the Minister will note your remarks.

Mr. McGowan

I appreciate his response.