Brendan Ryan
Question:378. Deputy Brendan Ryan asked the Minister for Jobs, Enterprise and Innovation the trade agreements that are in place between Ireland and Colombia; and if he will make a statement on the matter. [46697/13]
View answerTuesday, 5 November 2013
Questions (378, 379)
Brendan Ryan
Question:379. Deputy Brendan Ryan asked the Minister for Jobs, Enterprise and Innovation the trade agreements that exist between the European Union and Colombia; when these agreements were signed; and if he will make a statement on the matter. [46698/13]
View answerWritten answers
I propose to take Questions Nos. 378 and 379 together.
The competence for trade negotiations lies with the European Union. The trade agreement between the European Union and its Member States and Colombia and Peru, was signed in June, 2012. The agreement with Peru was provisionally applied from 1 March, 2013, and following Colombia’s internal procedures for ratification, the agreement with Colombia was provisionally applied from 1 August 2013.
Provisional application means that businesses have been able to benefit from all of the agreed trade preferences set out in the Agreement with Peru and Colombia as of 1 March 2013 and 1 August 2013 respectively. Once all EU Member States have ratified the Agreement, it can fully enter into force.
Ireland’s trade with Colombia is relatively small. In 2012 trade in goods and services with Colombia amounted to €216 million, compared with €175 million in 2011. In 2012 Colombia was ranked in 71st place in terms of our goods exports and in 42nd place in terms of our services exports. Our main exports to Colombia are medical devices, ICT equipment, food and drink products. Total trade with Peru is considerably smaller at less than €50 million in 2012.
While trade with both countries is small, Irish exporters are increasingly globalising their sales. Consequently, free trade agreements such as these are important in helping our ambitious and innovative exporters build new markets and especially where there is longer term potential for higher economic and product sector growth.
The Agreement will open up markets for products traded between the EU, Colombia and Peru. At the end of the transition period, (ranging from 3 to 15 years depending on the sensitivity of the products to Colombian producers), there will be no customs duties at all on industrial and fisheries products and trade in agricultural products will become considerably more open. As a result, EU exporters could save as much as €500 million annually in tariffs alone.
The main benefit of the new trade regime will come from a more transparent, predictable and enforceable business environment. Better conditions for creating business links should lead to more integrated value chains and make it easier to transfer technology.
The EU-Colombia deal includes far-reaching provisions on the respect of human rights, the rule of law and effective implementation of international conventions on labour rights and environmental protection. Civil society organisations will be systematically involved to monitor the implementation of these commitments.
The EU is Colombia’s third largest source of imports. Imports from the EU are mostly machinery and transport equipment. At the same time, the EU is Colombia's the second biggest export market. EU demand for Colombian products is mostly in the agricultural, fuel and mining sectors. The Agreement should allow Colombia to diversify its exports to the EU, not only for agriculture and fisheries, but also for Colombian industrial products. EU-Colombia trade has grown significantly in recent years and reached more than €14 billion in 2012. The EU remains also one of the largest investors in Colombia.