Dáil Éireann díospóireacht -
Thursday, 21 Jun 1990

Vol. 400 No. 3

Written Answers. - GATT Negotiations.

Bernard J. Durkan

Ceist:

18 Mr. Durkan asked the Minister for Agriculture and Food if it is his intention, in the context of the GATT negotiations, to put forward proposals aimed at reducing the import level of cheap food substitutes to Europe from the US and elsewhere with a view to ensuring the future of the cereal industry in Europe with particular reference to Ireland; and if he will make a statement on the matter.

John V. Farrelly

Ceist:

39 Mr. Farrelly asked the Minister for Agriculture and Food if he will make a statement on the GATT negotiations which are taking place at present.

Alan M. Dukes

Ceist:

48 Mr. Dukes asked the Minister for Agriculture and Food the plans he has, during Ireland's Presidency of the EC, to protect the interests of EC farmers in the context of the GATT negotiations.

Emmet Stagg

Ceist:

56 Mr. Stagg asked the Minister for Agriculture and Food if he supports the US position in the GATT talks of phasing out food price support mechanisms in order to make greater resources available to supplement smallholders and developing farmers directly and to reduce the cost of food to the consumers; and if he will make a statement on the matter.

Michael Creed

Ceist:

59 Mr. Creed asked the Minister for Agriculture and Food if he believes that Irish agricultural interests can be adequately protected during the GATT negotiations by the European Commission.

Theresa Ahearn

Ceist:

79 Mrs. T. Ahearn asked the Minister for Agriculture and Food if his attention has been drawn to the serious concern of farmers concerning the on-going discussions between the US and the EC on GATT; the steps he will take to counteract this serious threat; and if he will make a statement on the matter.

Minister for Agriculture and Food (Mr. O'Kennedy)

I propose to take Questions Nos. 18, 39, 48, 56, 59 and 79 together.

On taking over the Presidency of the Agriculture Council last January, I made it clear that I considered the GATT round of trade negotiations to be the major issue then facing agriculture. In my programme for the Presidency, I pointed out that I would be endeavouring to ensure that the fundamental principles of the Common Agricultural Policy were not endangered in the GATT negotiations. I undertook to involve the Agriculture Council to the fullest in the development of the Community's position as the Uruguay Round progressed.

The Community's approach to the GATT negotiations as they concern agriculture is that it is willing to participate in negotiations to re-establish balanced markets and a more market-oriented agricultural trading system. It is prepared to seek out better ways to manage international markets and to re-define GATT rules and procedures. The Community is also seeking a rebalancing of support and protection for a number of sectors including cereals' substitutes and oilseeds in order to remove distortions in trade between products such as cereals which enjoy high levels of protection and support and certain competing products where insufficient protection exists. Credit is also being sought for reform measures undertaken since 1986.

The Community is not prepared to accept the approach being advocated by the US whereby virtually all support and protection for agriculture would be phased out over a ten year period. Such an approach would be likely to extend to internal markets and cause instability in supply and price which is common on world agricultural markets to the detriment of both producers and consumers. The US proposal is also unsuited to an agricultural and rural infrastructure such as exists in the EC with its smaller farm size and more than ten million farmers. All the available evidence shows that adoption of the US approach would involve disproportionately heavy losses for the Irish economy.

The GATT discussions on agriculture in the earlier months of 1990 have been devoted largely to clarifying the positions of the main participants in the negotiations as outlined in the comprehensive long-term proposals which each had submitted in late 1989. The real negotiating phase is now about to commence. I, therefore, arranged to have the matter placed on the Council's agenda for our April meeting. In the discussions at the Council, Ministers unanimously supported the global approach to the negotiations being pursued by the Commission and in particular the Commission's defence of the basic principles of the Common Agricultural Policy including such essential elements as the two-tier price system, Community preference and the role of market policy. The Council also agreed that Agriculture Ministers should regularly consider developments in the GATT negotiations and I am, therefore, raising the issue again at the June Council. I believe that it is essential that the Agriculture Council should play a full role in the Community's input to the GATT negotiations and in promoting the Community's agriculture interests.

The Common Agricultural Policy is essential to ensure the well being of Irish and Community agriculture. This has been made very clear in the mandate given by the Council to the Commission and was reaffirmed by the Agriculture Ministers as recently as 25-27 April. Earlier this year, I indicated to the Dáil that my principal aims in the negotiations are to ensure that the Community can continue to support farming and rural areas and that farmer's incomes are maintained at reasonable levels. I believe that these aims have been brought closer to reality by virtue of the strong line coming from the Agriculture Council during my Presidency.

The Uruguay Round negotiations are scheduled to conclude at a meeting of the GATT in Brussels next December. The Government will be considering at an appropriate time how the Dáil might best be kept informed of the developments in the GATT over the coming months.