Dáil Éireann Debate, Tuesday - 14 July 2015
362. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation if he will provide an update on the latest discussions on the Transatlantic Trade and Investment Partnership; and if he will make a statement on the matter. [28711/15]
View answerThe 9th round of a new EU/US free trade deal negotiations took place in New York from 20 – 24 April 2015. The 10th round is being held this week (13 – 17 July) in Brussels. The objective during these rounds is to make as much progress as possible in all areas of the negotiations. During the last Round, work advanced in all three pillars of the negotiations: market access, regulatory cooperation and rules. On market access, the discussions were technical, aimed at better understanding the respective tariff offers and issues around government procurement. Regulatory issues took up a lot of the time, with a focus on both horizontal co-operation as well as the 9 specific sectors [cars, pharmaceuticals, medical devices, cosmetics, engineering, textiles, chemicals, pesticides, ICT]. The regulatory discussions are aimed at enhancing transatlantic trade by reinforcing regulatory co-operation in areas of shared interest and cutting out overlapping, unnecessary red-tape. The discussions in the area of rules included sustainable development, and energy and raw materials. Small and medium enterprises (SMEs) were also discussed in the last Round, specifically, how SMEs might benefit from a new free trade deal. A Report released by the EU Commission on 20 April, which identifies perceived obstacles to trade for SMEs, will inform the EU approach in this area. The definitive time-frame is difficult to predict but it is expected that there will be substantial progress in these negotiations in 2015. According to assessments made by the EU Commission, a comprehensive free trade deal could over time boost EU GDP by 0.5% bringing significant economic gains as a whole for the EU. This converts into 400,000 jobs across the EU. An independent study commissioned by my Department, carried out by Copenhagen Economics, estimates that these benefits in Ireland will be proportionally greater than in the EU as a whole. It suggests a boost to GDP of 1.1%, growth in Irish exports of almost 4%, increases in investment of 1.5%, and an increase in real wages of 1.5%. It estimates somewhere between 5,000 and 10,000 additional export related jobs.
It also suggests that Irish SMEs will be particular beneficiaries. Many of these are part of European supply chains where their exports to the UK, Germany or elsewhere to the EU, feed into Europe’s exports to the U.S. Ireland’s approach to negotiations will be informed by the analysis from Copenhagen Economics. We will seek to have opportunities created in the agreement where we have clear strengths, and we will seek defend our interests where we have sensitivities.
As an economy that lives and grows by the freedom to trade, we have first-hand experience of how trade liberalisation has continually shaped and reshaped our economy. The Copenhagen Economics study should also inform our policy responses as a result of TTIP. Some of these may arise from sector impacts that have been identified in the Copenhagen Economics study. We have used openness to trade in the past, and will continue to use it, as an instrument for structural reform, modernisation and development, creating new opportunities for innovation and stronger productivity growth with higher skilled jobs throughout the economy.
