Dáil Éireann díospóireacht -
Thursday, 9 Jul 1992

Vol. 422 No. 5

Written Answers. - EC Export Duties.

Bernard Allen

Ceist:

63 Mr. Allen asked the Minister for Agriculture and Food if he will outline the implications for the Irish economy arising from the US drafting a list of EC exports on which they threaten to impose big duties, as 10.4 per cent of the list is Irish exports.

Bernard Allen

Ceist:

146 Mr. Allen asked the Minister for Agriculture and Food if he will outline the proposals, if any, he has in relation to the United States decision to suspend tariff concessions on European Community agricultural produce; and the way in which this will affect Ireland.

Minister for Agriculture and Food (Mr. Walsh)

I propose to take Questions Nos. 63 and 146 together.

I addressed this issue in the Dáil on 11 June. As I stated then, the publication by the US of a retaliatory list threatening the suspension of tariff concessions on European Community agriculture produce was deplorable and without justification.

The threatened measures are linked to a longstanding EC/US dispute in relation to oilseeds in which the US challenged in the GATT Community subsidies to EC producers and processors of oilseeds. The US unilaterally published the retaliatory list even though the matter is being dealt with through the dispute settlement procedures of the GATT and despite the fact that the EC had agreed to comply with its GATT obligations. The US action has no legal basis in the GATT and has been strongly condemned by the EC.

The measures, if implemented, could have a very serious impact on many Irish industries and in particular, on the manufacturers of casein, cream liqueurs and cheeses. Almost $2 billion of EC agriculture products are targeted and Ireland's share of the list is slightly in excess of 10 per cent of the total value. The level of the threat to Irish products is totally unjustifiable and in terms of our volume of trade to the US we would be the hardest hit of all EC countries. I have expressed my views on the retaliatory list in the strongest terms to the US authorities and in particular the potential adverse impact on Ireland. I have also been in contact with the Commission on the issue and the Irish Embassy in Washington is, at my instigation, lobbying various parties seeking to have the threat to Irish trade removed.

In relation to the oilseeds dispute, I am pleased that the GATT Council recently authorised the Community to enter into negotiations to compensate the parties concerned, including the US. This process will take a few months to complete and, in the interim, the proposed measures will not take effect. I am optimistic that the negotiations will result in an equitable solution to the problem and in removing the threat to EC and Irish interests.

The House can be assured that I am doing all in my power, both bilaterally and within the Community framework, to ensure that this treat does not become a reality.