Dáil Éireann Debate, Wednesday - 22 July 2020
62. Deputy Alan Farrell asked the Tánaiste and Minister for Business, Enterprise and Innovation the status of cooperation between Ireland and Canada with respect to CETA; and if he will make a statement on the matter. [17579/20]
View answerThe EU-Canada Comprehensive Economic Trade Agreement (CETA) is a progressive and comprehensive trade agreement between the EU and Canada. CETA has provisionally applied since 21st September 2017 meaning that duties on 98% of products (tariff lines) that the EU trades with Canada have been removed. The reduced trade barriers, tariff elimination, simplified customs procedures and more compatible technical requirements all make it easier and cheaper for Irish companies of all sizes to export to Canada.
International Trade Policy is a competence of the EU Commission under the EU Treaties and defined as the Common Commercial Policy. Under this architecture the Commission represents Ireland and other Member States in taking into account the needs of individual Member States and the collective good of the Union in international trade negotiations.
Bilaterally, business links between Ireland and Canada are deep and extensive - outside of Europe, the US and China, Canada is our largest indigenous export market. More than 400 Enterprise Ireland clients are doing business in the Canadian market with over 6,000 people in Canada employed by Enterprise Ireland clients. This strong economic relationship, as well Ireland's support for a fully implemented CETA, was emphasised to our Canadian partners by former Minister of State at my Department Pat Breen during a Trade Mission to Canada in May 2019. While the 2020 Programme of Trade Missions had to be cancelled due to the COVID-19 pandemic, my Department sees the Canadian market as continuing to present strong opportunities for Irish exporters and, therefore, foresees Canada featuring again in our 2021 Trade Mission Programme.
I might also add that my Department's analysis has found that when comparing the last full year of trade prior to the provisional application of CETA, 2016, and the first full year of provisional application, 2018, trade grew by 27%. Furthermore, the cost of service barriers to trade will, on average, be reduced under CETA by 10 per cent in Canada and by 4 per cent in the EU. Moreover, the benefits and opportunities to business in the removal of non-tariff barriers to trade (NTBs) - in areas such as regulatory co-operation, trade facilitation measures, streamlined administration etc. - contained within CETA will be especially valuable for SMEs, given that trade barriers tend to disproportionately burden smaller firms, which have fewer resources to overcome them than larger firms.
To date, 14 Member States have signaled to the General Secretariat of the Council of the European Union the completion of their respective national ratification procedures while several other Member States are currently progressing approval of the Agreement. Ireland, like many Member States, was awaiting the opinion of the Court of Justice of the European Union (CJEU) in a case that regarding the compatibility of CETA with EU law prior to considering the commencement of our ratification process. The Opinion of the CJEU issued on 30th April 2019 and found that there were no issues regarding the compatibility of the Agreement with EU law and no changes to the text of CETA required.
As a result of this decision of the CJEU, I will, in due course, consider with my Government colleagues, the moving a motion in Dáil Éireann (in accordance with Article 29.5.2 of the Constitution), seeking approval on the terms of the Agreement. If Dáil Éireann votes in favour of the Agreement, Ireland will subsequently notify the General Secretariat of the Council of the European Union that we have completed our respective internal requirements and procedures concerning the ratification of CETA.
