I believe that a successful conclusion of the trade negotiations between the EU and US for a Transatlantic Trade and Investment Partnership (TTIP) will be good for the Irish agri-food sector and will increase our exports.
There is a misconception that one of the objectives of the TTIP negotiations is to achieve mutual recognition and harmonisation of food standards between America and Europe. This is not the case. Rather, the principle of equivalence will be the basis for trade. Essentially this means that, while food production processes need not be identical in the EU and US, these processes must provide equivalent guarantees regarding the standards of production in order for trade to take place. Under the equivalence principle, it is the importing Party that decides whether the conditions for equivalence have been met.
In addition the negotiating directives agreed by the EU for these negotiations preserve “the right of the Parties to take measures necessary to achieve legitimate public policy objectives on the basis of the level of protection of health, safety, labour, consumers, the environment and the promotion of cultural diversity..., that they deem appropriate”.
The principle of equivalence together with the right of reservation on policy grounds should provide good protection for Irish consumers and will allow the EU to retain its current approach to food standards. This is particularly relevant in relation to the use of hormones in meat production. The EU Commission has made it clear in the negotiations that it will not countenance the importation of hormone treated meat into the EU and this is well understood by the US side.
The reality is that Ireland has strong offensive interests in these trade negotiations, particularly in the agri-food sector. We are seeking greater market access for dairy products both in terms of tariff reductions and removal of regulatory barriers. Key exports would be branded packaged butter, powdered products and sports products. We are also interested in meats – both beef and pork – and in opening the US market to Irish lamb. The expectation in the past was of a limited opportunity or niche market for exports of beef to the US. However, because of the recent higher prices in the US, the US market will become more attractive for other lower value beef cuts. Consumer foods are also a potential area for growth, particularly porridge oats.
Of course, on beef, we have defensive interests as well although our defensive interests are tempered by recent developments in US prices and our gaining of access to the US market for Irish beef. Nevertheless it is important that any quota granted to the US does not undermine the absorption capacity of the EU. Furthermore any quota agreed with the US would need to be matched with a quid-pro-quo quota for EU beef in the US. Ireland would be well placed to benefit from such a quota, with our first mover advantage on the US market.
I am in regular contact with Minister Bruton and his Department on this matter.