Jim O'Keeffe
Ceist:98 Mr. J. O'Keeffe asked the Minister for Foreign Affairs if he will outline the advantages and disadvantages to Ireland of the new arrangement reached between the European Community and the European Free Trade Association.
Written Answers. - EC/EFTA Agreement.
The agreement reached in Luxembourg on 22 October between the EC and EFTA member states to create the European Economic Area (EEA) will result in the creation on 1 January 1993 of the largest single unified market in the world consisting of some 380 million consumers and accounting for 43 per cent of world trade.
The EEA Agreement provides for the free movement of goods, persons, services and capital among the 19 EC and EFTA states. Institutional arrangements, including arrangements for an EEA Council at ministerial level, form part of the agreement and there is provision for increased co-operation in areas such as social policy, consumer protection, the environment, research and development and education. The agreement also aims to contribute to the reduction of economic, social and regional disparities within the EEA.
This agreement will provide a comprehensive framework for strengthening relations between the EC and its close neighbours in EFTA with whom it shares much in the political, economic, cultural and social spheres. The agreement is a balanced one, providing benefits for all participants. The extension of the Single Market to EFTA should result in a boost to economic activity throughout the EEA. The agreement may also have significance as a possible model for wider co-operation between European states.
Ireland enjoys excellent relations with the EFTA member states and welcomes the EEA agreement as an appropriately strong framework for EC-EFTA co-operation. We are well pleased to benefit from easier access to this larger market in goods and services, having already in 1990 a trade surplus of some IR£270 million with the EFTA countries.
In the course of the negotiations concern was nevertheless expressed by several member states, including Ireland, that the benefits of market integration would not be spread evenly throughout the EEA. Together with Spain, Portugal and Greece, we therefore sought inclusion in the agreement of appropriate provisions to promote economic and social cohesion. A cohesion fund to be set up by the EFTA states will be among the instruments to be used in this area. The fund will consist of 500 million ECU — £400 million — in grants and 1,500 million ECU — £1,200 million — in loans which will attract a 3 per cent interest rate subsidy. These sums are to be committed over a five year period beginning in 1993. Ireland expects to benefit from the operations of the cohesion fund by amounts of approximately £50 million in grants and £150 million in soft loans.
There was some concern also at possible disadvantages for Ireland arising in the fisheries sector of the agreement. However, the threat to the developing Irish fishing industry from tariff concessions on imports of herring, mackerel and salmon was averted when it was agreed that these species would be excluded from the liberalisation process. In addition, Ireland has made clear its claim to a portion of the extra fish resources — 11,000 tonnes by 1997 — that will be made available in Norwegian waters.
These will be allocated among EC member states on the basis of cohesion criteria.
Jim O'Keeffe
Ceist:99 Mr. J. O'Keeffe asked the Minister for Foreign Affairs when he expects that the European Economic Area Treaty involving the EC and EFTA countries will be tabled for ratification by Dáil Éireann.
The negotiations between the EC and member states of EFTA to create the European Economic Area (EEA) concluded with agreement at political level in Luxembourg on 22 October. The negotiations are continuing at official level in order to finalise rapidly a number of technical issues which remain to be resolved. It is expected that the agreement will be initialled in the next few weeks and signed before the end of the year.
The agreement will be signed subject to ratification. It will be ratified by the contracting parties in accordance with their respective constitutional requirements. It is envisaged that the agreement will enter into force on 1 January 1993, provided all the contacting parties have deposited their instruments of ratification before that date. I intend to ensure that all the necessary domestic procedures are completed on time to meet the deadline of 1 January 1993.