Dáil Éireann Debate, Thursday - 28 January 2021
2. Deputy Holly Cairns asked the Tánaiste and Minister for Enterprise, Trade and Employment if any research or analysis will be made available carried out by his Department or a body working with or on behalf of his Department on the environmental impact of the Comprehensive Economic and Trade Agreement between the EU and Canada; and if he will make a statement on the matter. [4962/21]
View answerThe EU-Canada Comprehensive Economic and Trade Agreement, commonly known as CETA, is one of the EU’s new generation of progressive free trade agreements. CETA is designed to benefit EU and Canadian companies through improved trade flows in support of increased employment for our citizens. The elimination of tariffs, reduced trade barriers and simplified customs procedures that flow from CETA all make it easier and cheaper for Irish companies of all sizes to export to Canada and vice versa. Outside of Europe, the US and China, Canada is our largest indigenous export market with more than 400 Enterprise Ireland clients doing business in the Canadian market employing over 6,000 people.
Diversifying trade is an important part of our Brexit response and it will be an important factor in our recovery post-pandemic. To this end, the best way to achieve export growth and market diversification is by improving market access and reducing costs of entering those markets which is what CETA is designed to achieve. Given our historic ties with Canada, Ireland’s enterprises are particularly well placed to benefit from CETA.
At EU level, a Sustainability Impact Assessment relating to the negotiation of CETA was carried out by Development Solutions. This study provided a comprehensive assessment of the potential impacts of trade liberalisation under CETA. The impact analysis assessed the economic, social and environmental impacts in Canada and the European Union, in three main sectors, sixteen sub-sectors and seven cross-cutting issues. In addition to examining potential gains from removing factors affecting the free flow of goods, services and capital, consideration was given to areas such as labour mobility, government procurement, intellectual property rights, telecommunications services and electronic commerce. Overall the impact assessment found that the sustainability impacts to Canada and the European Union would not be significant. The European Commission published the final report in June 2011 which is available online at https://trade.ec.europa.eu/doclib/docs/2011/september/tradoc_148201.pdf.
As part of the finalising of the Agreement, the EU and Canada also agreed a legally binding Joint Interpretative Instrument (JII) that was added to CETA to provide further assurances in relation to public services, labour rights, environmental protection and investment. CETA does not affect EU rules on food safety or the environment. Neither does it restrict the EU or Canada from passing new laws in areas of public interest such as the environment, and health and safety. Importantly, in CETA both sides also agree that more trade and investment should not be at the expense of environmental protection and labour rights. On the contrary, the EU and Canada are committed to ensuring that CETA helps ensure that economic growth, social development, and environmental protection go hand in hand.
At a national level, my Department has commissioned econometric modelling on the impacts of CETA. On a bilateral basis, Ireland’s exports to Canada are estimated to be 31% higher in 2030 than they would have been in the absence of CETA. The analysis also finds that Ireland’s GDP is estimated be 0.2 percent higher in 2030 than would have been the case in a baseline scenario without CETA. It further finds total global exports from Ireland are expected to be 0.7 percent higher in 2030 as a result of CETA. In addition, the current modelling estimates that, given that existing average tariffs on exports to Canada are relatively low (0.3% weighted average), the main benefits for Irish exporters stemming from CETA arise from a 10 percent reduction in non-tariff barrier costs on Ireland’s exports to Canada.
Furthermore, the EU produces an FTA Annual Implementation Report which identifies progress with FTA deliverables and which can inform further actions if required. Finally, in July 2020 the European Commission appointed a Chief Trade Enforcement Officer who is tasked with overseeing effective implementation and observance of commitments in our EU FTAs, including CETA, which includes strengthening the enforcement of sustainable development commitments, notably in relation to the climate agenda and labour rights.
