Dáil Éireann Debate, Wednesday - 15 June 2016
225. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation if she has identified the positive and negative aspects of the Transatlantic Trade and Investment Partnership with a view to maximising economic opportunities; and if she will make a statement on the matter. [16317/16]
View answerThe EU-US Transatlantic Trade and Investment Partnership Agreement will be the world’s largest bilateral trade and investment deal, and a successful pact is expected to benefit Ireland more than any other EU Member State. It is very important to Ireland as it will build on our already rewarding economic relationship with the US and create new opportunities to stimulate growth, create employment and continue to grow our economy. An independent study commissioned by my Department, carried out by Copenhagen Economics, found that almost half (49%) of Irish exports outside of the EU end up in the US, compared to the combined average of 16% for all Member States, and 25% of foreign direct investment (FDI) in Ireland comes from the US.
Given our historic economic and cultural ties, Ireland’s enterprises are particularly well placed to take up opportunities to trade more easily with the US. The study estimates that the 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. The study predicts new opportunities for many Irish industry sectors including pharmaceuticals and chemicals, Agri-food (notably dairy and processed food), insurance and machinery.
The findings are backed up in a recent comprehensive interim independent report contracted by the EU Commission, carried out by Ecorys Consultancy and published on 13th May 2016. The report estimates that a comprehensive EU-US trade agreement would boost Irish GDP by 1.4%.
The EU-US trade negotiations herald the start of a new style of trade agreement that not only covers tariffs, trade and investment but also includes regulatory coherence and cooperation. An EU-US trade agreement will tackle a whole range of issues to make business with the US easier. A comprehensive and ambitious agreement would remove customs duties, increase access to public contracts, open-up services market, and offer predictable conditions for investors.
I will continue to work at securing the best deal for Ireland by the end of these negotiations, bearing in mind our defensive interests, in sensitive areas such as the beef sector. This was identified in the Copenhagen Economic study. This trade and investment agreement will build on the deep economic and wider relationship we have with the US, and will create jobs by opening up further opportunities in the US market for Irish business.
