asked the Minister for Industry and Commerce if he will state what is the present position concerning the proposed Free Trade Area; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Free Trade Area.
Mr. Lemass
The Inter-Governmental Committee set up by the Council of the O.E.E.C. in October, 1957, have been discussing the basis on which a Free Trade Area, which would associate on a multilateral basis the European Economic Community with the other member countries of the O.E.E.C., could be established.
This committee, on which all 17 member countries of the O.E.E.C. are represented by Ministers, were asked to complete their work in time to permit of the coming into effect of a Free Trade Area by 1st January, 1959, on which date the first series of tariff reductions and quota enlargements come into operation within the European Economic Community.
Unless there are some extraordinary developments, it is now unlikely that this target can be attained; but work is continuing and the Inter-Governmental Committee will meet again this month.
Although agreement has been reached on the methods by which various matters should be dealt with in a Free Trade Area, certain fundamental differences persist in the Inter-Governmental Committee. The most important of these differences relate to the definition of goods which would benefit from the removal of trade barriers in a Free Trade Area, and to the degree of freedom which member countries should have in their commercial relations with countries outside the Area. The problem of origin and certain related questions, which have proved particularly difficult, have now been remitted to a committee which will sit in a permanent session under the chairmanship of the Chairman of the Inter-Governmental Committee in order that decisions may be reached as soon as possible, and if possible, by the 31st December, 1958.
The treatment of agriculture, which has been one of the major problems since the start of the negotiations, is still unsettled, but the difficulties in this regard do not now appear to be so formidable as they did in the earlier discussions. It is clear, however, that any such agreement will not provide for a regime of free trade in agriculture on the lines of the arrangements visualised for industrial products.
With regard to the treatment of Ireland as a country in the process of economic development, the Inter-Governmental Committee have received favourably the case made that we should be allowed a longer period than the more advanced countries in which to scale down, and ultimately eliminate, protective measures. If a Free Trade Area is set up, and if we join, it may be taken that we will be allowed to reduce industrial protection against imports from the economically advanced countries at a substantially slower rate than that at which those countries will be obliged to reduce their protective measures against any manufactured goods we may have for export to them.