Dáil Éireann Debate, Wednesday - 30 April 2014
252. Deputy Finian McGrath asked the Minister for Jobs, Enterprise and Innovation if his attention has been drawn to the major consequences for small coffee producers and agricultural farmers in Colombia whose markets are being flooded with the subsidised European and US goods that are undercutting local produce as a result of an EU-US free trade agreement. [18584/14]
View answerI am not aware of the detail referred to in the question. The Free Trade Agreement between the EU and Columbia contains important tariff free access to EU markets for key interests of Colombia. These include access to the EU market for key agricultural exports from Colombia including sugar, flowers, coffee, bananas and other fruit and beef, whilst also protecting Columbia’s sensitive products such as pork, poultry, corn and rice. For some products that are important for Colombia’s farmers, the trade agreement provides lengthy transition periods, some up to 15 years, before EU exporters can obtain tariff and quota free access to the Colombian market. Studies undertaken on behalf of the EU indicate that the Agreement will increase Columbia’s GDP by 14%.
The question of the European Union’s Common Agricultural Policy comes within the remit of the Minister for Agriculture, Food and the Marine. However, I am informed that by 2013, at least 93 % of direct payments paid in the EU were decoupled from a requirement to produce a specific agricultural product, with the result that farmers produce for market opportunities. Studies and economic modelling have shown that direct and decoupled payments do not influence production decisions, and for this reason, they are regarded as non-trade distorting in the context of World Trade Organisation rules. Additionally, the role of export refunds is almost marginal in the context of EU agricultural exports. The EU-Colombia Agreement foresees the elimination of export subsidies.
The EU-Colombia Agreement also contains provision for agricultural safeguards which can be activated by a quantity trigger mechanism when imports exceed a specific level. This allows for additional import duties to be applied by Colombia to protect its agriculture sector in the event of a sudden and significant increase in imports. The agreement also provides for the setting up of an agriculture committee to monitor the impact of the agreement on this sector. I have no role in any trade agreement between Colombia and the US.
