Dáil Éireann Debate, Wednesday - 20 July 2016
438. Deputy Thomas P. Broughan asked the Minister for Jobs, Enterprise and Innovation the Government's position on the provisional application of the European Union-Canada Comprehensive Economic and Trade Agreement, CETA; her views on whether the investor state dispute settlement mechanism of CETA is compatible with European Union law; and if she will make a statement on the matter. [23255/16]
View answer439. Deputy Thomas P. Broughan asked the Minister for Jobs, Enterprise and Innovation the key implications for Dáil Éireann from the European Union-Canada Comprehensive Economic and Trade Agreement; the way the trade agreement can be implemented when it clearly contradicts European Union law as imposed by the Maastricht, Nice and Lisbon treaties; and if she will make a statement on the matter. [23256/16]
View answerI propose to take Questions Nos. 438 and 439 together.
The EU-Canada Comprehensive Economic Trade Agreement (CETA) is a new generation agreement that will remove over 99% of tariffs between the EU and Canada and will create sizeable new market access opportunities in services and investment. It will end limitations in access to public contracts, open-up services market, and offer predictable conditions for investors.
The agreement covers virtually every aspect of economic activity, and it is extremely important for Ireland. It offers significant opportunities for growth in trade with Canada. The agreement opens up public procurement markets in the Canadian provinces giving Irish firms increased access to Canadian public sector purchasing. Ireland also gains unlimited tariff free access for most of our important food exports. Irish firms will also benefit from the recognition of product standards. In addition, Ireland successfully campaigned for a low beef import quota from Canada to the EU thereby safeguarding our important EU market in this area.
At the EU Council of Trade Ministers on 13 May 2016, the Council had an exchange of views on CETA and the process towards signature and provisional application of the agreement. The European Commission and Member States highlighted the high quality of the agreement reached with Canada and expressed the desire to work towards signature of the agreement at the October EU-Canada Summit. At the meeting, I made Ireland’s approach clear, that based on our assessment of its provisions, we viewed CETA as a mixed Agreement, in terms of EU and Member State competency.
The Commission published its proposals for signature, conclusion and provisional application of the agreement on 5 July 2016. The Commission has now decided to submit CETA to the Council for decision as a mixed agreement.
It will be a matter for the Council and the European Parliament to decide on the signature and provisional application of CETA. Following a decision by the Council with the consent of the Parliament, it will be possible to provisionally apply CETA. Its full entering into force will be subject to the conclusion by the EU, through a Council decision with the consent of the Parliament, and by all Member States through the relevant national ratification procedures. This means that the Oireachtas will be part of the final decision to ratify the agreement.
The provisional application of Free Trade Agreements is standard practice. What is at issue is what should be within scope in such application. We’ve argued that only those areas directly within exclusive Commission competence should be covered by provisional application. The Commission has already accepted that the CETA is a mixed agreement.
The provisions of the CETA on investment dispute resolution relate solely to the CETA as a multinational trade agreement. International trade agreements are not part of domestic law. This is why separate adjudication arrangements are required in the event of disputes under the agreement.
The issue of mixity and the extent of EU competence in a Free Trade Agreement is before the European Court of Justice. I understand that a decision is expected in 2017.
