asked the Minister for Industry, Trade, Commerce and Tourism the extent of tariff reductions scheduled for implementation in 1985 under the multilateral trade negotiations; and how far these reductions are likely to impact on domestic traditional industries.
Ceisteanna — Questions. Oral Answers. - Tariff Reductions.
9.
The normal tariff reductions for 1985 are those which form one of the eight equal sets of reductions scheduled under the Tokyo Round of Multilateral Trade Negotiations for the period 1980 to 1987.
EC and other OECD Ministers decided in May 1984 that, in an effort to assist world economic recovery, they would accelerate, i.e., roll back, the 1976 Tokyo Round cuts to 1985.
As it became clear that some of its major trading partners would not make the 1986 cuts in January 1985, the EC decided to restrict its tariff cuts to those which would best assist least developed countries. Accordingly, Ireland, in common with other members of the EC, has brought forward from January 1986 to 1 January 1985 reductions in respect of certain tariff headings of particular interest to the least developed countries. It is proposed to make the remaining 1986 cuts later in 1985 when other major trading countries have done likewise.
The tariff reductions scheduled for 1985 will have a minimal impact on domestic traditional industries because, during the Tokoyo Round negotiations, derogations from the general run of tariff reductions were achieved on behalf of those industries.
Does the Minister agree that the time has come to renegotiate these tariffs? It horrified me to learn from the Minister's reply about the tariff cuts in 1986, some of which are being brought forward to 1985. Would the Minister and the Government not ask the EC to renegotiate and try to slow down the reduction of those tariffs rather than accelerate them, in view of the devastation of our domestic industries — the clothing, printing and food industries — and the dumping of products on the Irish market? Is there not a case for asking the EC to slow down the tariff cuts within the Community rather than accelerate them? If we do not get co-operation from the EC on that, should we not spell out to them in stronger language that our traditional industries are being devastated by the cutting away of the tariff barriers? Will the Minister seek the renegotiation of those tariffs?
I made a statement outlining my view of world trade matters on the occasion of a visit I made in November too GATT in Geneva. On that occasion I said that we must fight a developing tendency for Governments to take action to protect their home markets from imports. I said that this was essential to the development of world trade at a time when we are struggling to shake off the effects of world recession and that it was of critical importance for small open economies like Ireland which are dependent on maintaining outlets for their exports. I pointed out that world trade was at a crossroads and that unstable currencies, bilateral trade deals, barter trade and the inability of Governments to resist demands from local industries for protection threatened the world recovery from the effects of the 1979 oil shock. I said that if this recovery did not continue there would be little hope of overcoming the unemployment problem.
I feel strongly that it must be the Government's endeavour to increase efforts to have freer trade in the world because the tendency towards protectionism and barter and State deals are most likely to prevent world economic recovery reaching its full potential.
We could protect some industries such as clothing.