I move the following motions:
That Dáil Éireann approves the terms of the Partnership and Co-operation Agreement establishing a partnership between the European Communities and their member states, of the one part, and Georgia, of the other part, which has been laid before the Dáil on 2 May 1996.
That Dáil Éireann approves the terms of the Partnership and Co-operation Agreement establishing a partnership between the European Communities and their member states, of the one part, and the Kyrgyz Republic, of the other part, which has been laid before the Dáil on 23 October 1995.
That Dáil Éireann approves the terms of the Partnership and Co-operation Agreement establishing a partnership between the European Communities and their member states, of the one part, and the Republic of Armenia, of the other part, which has been laid before the Dáil on 2 May 1996.
That Dáil Éireann approves the terms of the Partnership and Co-operation Agreement establishing a partnership between the European Communities and their member states, of the one part, and the Republic of Azerbaijan, of the other part, which has been laid before the Dáil on 2 May 1996.
That Dáil Éireann approves the terms of the Partnership and Co-operation Agreement establishing a partnership between the European Communities and their member states, of the one part, and the Republic of Belarus, of the other part, which has been laid before the Dáil on 23 October 1995.
That Dáil Éireann approves the terms of the Europe Agreement establishing an association between the European Communities and their member states, of the one part, and the Republic of Estonia, of the other part, which has been laid before the Dáil on 23 October 1995.
That Dáil Éireann approves the terms of the Partnership and Co-operation Agreement establishing a partnership between the European Communities and their member states, of the one part, and the Republic of Kazakhstan, of the other part, which has been laid before the Dáil on 23 October 1995.
That Dáil Éireann approves the terms of the Europe Agreement establishing an association between the European Communities and their member states, of the one part, and the Republic of Latvia, of the other part, which has been laid before the Dáil on 23 October 1995.
That Dáil Éireann approves the terms of the Europe Agreement establishing an association between the European Communities and their member states, of the one part, and the Republic of Lithuania, of the other part, which has been laid before the Dáil on 23 October 1995.
That Dáil Éireann approves the terms of the Partnership and Co-operation Agreement establishing a partnership between the European Communities and their member states, of the one part, and the Republic of Moldova, of the other part, which has been laid before the Dáil on 23 October 1995.
That Dáil Éireann approves the terms of the Partnership and Co-operation Agreement establishing a partnership between the European Communities and their member states, of the one part, and the Russian Federation, of the other part, which has been laid before the Dáil on 23 October 1995.
That Dáil Éireann approves the terms of the Partnership and Co-operation Agreement establishing a partnership between the European Communities and their member states, of the one part, and Ukraine, of the other part, which has been laid before the Dáil on 23 October 1995.
Dáil approval of the terms of these agreements is necessary in accordance with Article 29.5.2 of the Constitution which stipulates that: "the State shall not be bound by an international agreement involving a charge on public funds unless the terms of the agreement shall have been approved by Dáil Éireann".
An explanatory memorandum setting out the background to the agreements and their content has been provided for the information of Deputies through the Whips' office. Copies of the Europe Agreements with Estonia, Latvia and Lithuania and of the Partnership and Co-operation Agreements with Belarus, Kazakhstan and Kyrgyz Republic, Moldova, the Russian Federation and Ukraine, were laid before the Dáil on 23 October 1995. Copies of the PCAs with Armenia, Azerbaijan and Georgia were laid before the Dáil on 2 May 1996.
Partnership and Co-operation Agreements were initiated by the European Union with a view to replacing the 1989 Trade and Co-operation Agreement with the former Soviet Union with contractual relations with each of the new states. As their name indicates, they are intended to assist the new states through partnership and co-operation with the European Union, in meeting the challenges of fundamental political and economic reform.
Good relations between the EU and a democratic Russia are clearly in the interests of both parties and are essential to stability in Europe. Ireland, and its partners in the European Union, are committed to establishing a substantial partnership with the Russian Federation in order to promote Russia's economic and democratic reform process, to enhance respect for human rights and to achieve the full integration of Russia into the international community. We must avoid the creation of new dividing lines in Europe.
These considerations underpin the action plan recently adopted by the Union with regard to Russia. There are five main elements in the Union's approach, viz:
—the Union will contribute to the democratic reforms in Russia by, for example, participating in the international observation of the forthcoming Russian Presidential elections; encouraging contacts between the European Parliament, members states' parliaments and the Russian parliament; supporting Russian institutions, particularly in an OSCE and Council of Europe framework, and assisting in the development of local and regional administration in Russia;
—economic co-operation between the Union and Russia, through, for example, the early ratification of the Partnership and Co-operation Agreement with Russia; developing trade relations and promoting Russia's integration into the international economy; the establishment of joint EU — Russia mechanisms with a view to facilitating the development of trade relations with Russia and encouraging the development of regional relations between Russia and its neighbours;
—co-operation between the Union and Russia in justice and home affairs, through, for example, co-operation in the fight against organised crime, drugs trafficking and money-laundering; co-operation in relation to illegal immigration and in matters relating to asylum and re-admission;
—co-operation with Russia on matters pertaining to security in Europe including on issues relating to disarmament, nuclear non-proliferation and conflict prevention and
—the further development of consultation at all levels between the Union and Russia on foreign policy issues.
I wish to emphasise in the House today the importance which Ireland, on the eve of its EU Presidency, attaches to the successful and harmonious development of EU-Russia relations on the basis of the Union's strategy and the action plan. As incoming Presidency, Ireland will have an important role to play in its implementation. From the perspective of Irish-Russian bilateral relations, we have much to gain from its success.
Ukraine is, after Russia, the largest of the newly independent states of the former Soviet Union in terms of population and potential economic importance. Members will recall the enormous difficulties faced by Ukraine following its independence in 1991 — a severe contraction of economic output, inefficient heavy industrial and mining sectors, an energy sector badly in need of reform, dislocation of trade relationships, soaring prices and an agriculture sector heavily concentrated on inefficient collective and state farms. Moreover, there was uncertainty about the scope, pace and direction of economic reform. Happily, 1994 marked a turning point for Ukraine with the adoption of a comprehensive reform package leading to considerable progress in stabilisation last year in the areas of economic output, inflation and the government deficit.
The European Union fully supports the Ukrainian authorities' commitment to the current process of economic reform and has continued to provide support for Ukraine through macroeconomic assistance. The Partnership and Co-operation Agreement with Ukraine explicitly recognizes that support for the independence, sovereignty and territorial integrity of Ukraine will contribute to the safeguarding of peace and stability in the region of central and eastern Europe and on the European continent as a whole.
With regard to the issue of nuclear safety in Ukraine, the EU's concerns on this point led it to propose last summer, in co-operation with its G 7 partners, an action plan for (i) the definitive closure of Chernobyl; (ii) reform of Ukraine's energy sector including the development of alternative energy sources; (iii) the up-grading of construction and operation standards in its nuclear subsector and (iv) ratification by Ukraine of the Vienna Convention on nuclear liability. This plan will involve a considerable effort for the international financial institutions and the EU — through EURATOM loans and TACIS grants. At its most recent meeting in Madrid, the European Council welcomed the agreement reached with Ukraine on the closure of Chernobyl by the year 2000. I know that I speak for all Members of this House when I emphasise the importance, for our own and for future generations of Europeans, in carrying through on this agreement. The horrors of Chernobyl demonstrate the need for solid partnership and co-operation among all European countries if transboundary challenges are to be effectively overcome in the future. This, in essence, is the philosophy which guides our approach to relations with the Republics of the former Soviet Union, including Ukraine.
The Agreements with Ukraine and Russia were signed in June 1994; with Moldova in November 1994 and with Belarus in March 1995. Agreements with Kazakhstan and Kyrgystan in Central Asia were signed in January and March last year, and with Armenia, Azerbaijan and Georgia, in the Caucasus region, in April this year. It is the aim of the European Union, circumstances permitting, to conclude PCAs — as they are called — with all of the newly independent states of the former Soviet Union in due course. An agreement is currently under negotiation with Uzbekistan.
The PCAs are founded on respect for human rights and democratic principles as essential elements in the partner countries' relations with the European Union. They are intended to provide a framework for political dialogue, to promote trade, investment and economic relations, to provide a basis for co-operation in various fields and to consolidate democracy and economic transition.
The Agreements are designed to assist actively the reform process in the countries concerned. The economic aspects, however, also have a political dimension. There is a close relationship between economic prosperity and political stability in this context, and many of the problems of the region — for example, the problems of minorities — will prove far more difficult to resolve without economic growth to change their context and to underpin solutions.
However, the agreements do not rely solely on an economic underpinning of reform for their political effectiveness — they include specific arrangements for political dialogue. This process is also intended to contribute to strengthening the relations of these countries with the wider community of democratic nations as a whole, from which they had been cut off for so long. The dialogue is also intended to bring about a convergence of positions between the dialogue partners on international issues of mutual concern.
Co-operation in the areas of strengthening stability and security in Europe, observance of the principles of democracy, respect and promotion of human rights, particularly those of persons belonging to minorities, are identified as priorities. The dialogue provisions of some of the agreements foresee the possibility of dialogue taking place on a regional basis, with a view to contributing towards a resolution of regional conflicts and tensions. This is intended to signal to these partners that political dialogue with the EU should not be seen as a substitute for their own efforts to solve regional problems with their neighbours. The dialogue would take place at ministerial, senior official and expert levels, and there is provision for co-operation of national parliaments with the European Parliament. In addition, in the case of Russia, consultations shall take place in principle twice a year between the Presidents of the Council and the Commission, on the one hand, and the President of Russia, on the other. Similar arrangements are provided for in the case of Ukraine.
Respect for democracy and principles of international law as defined by the UN Charter, the Helsinki Final Act, and the Charter of Paris for a new Europe are essential elements of the Agreements. Such provisions are a standard feature of all agreements between the EU and its OSCE partners. I would like to underline the importance which the EU, including Ireland, attach to these elements. There is provision in each of the Agreements for their suspension if their terms are breached.
The countries to which these Agreements relate are in the process of rapid and fundamental political and economic change. Their economic and political development had been stunted over a long period by totalitarianism. It should not surprise us, therefore, to find weaknesses and faults in the political and legal systems in many of them. Specific policies of the previous regimes have combined with historical tensions and rivalries — both within and between individual states — which the normal democratic process was not available to help resolve. This has meant that many latent conflicts and tensions have now come to the surface. Many of them involve also serious human rights abuses.
These conflicts — such as those in Chechnya, Nagorno-Karabakh and elsewhere — continue to be of serious concern to us, and the EU continues to work, bilaterally and through the OSCE or other fora, to seek solutions to them. What these Agreements do is to establish a partnership with the EU wherein a range of problems can be addressed, where the EU approach can be made known and assistance offered in seeking solutions. On the EU side, we must recognise that resolving these problems will take time and that we must, while seeking to promote our own standards, be prepared to make a long-term commitment to dialogue with the countries concerned.
The PCAs are broadly similar in structure and content but are tailored individually to meet the particular circumstances of each country. It is of particular interest to us in Ireland that the Agreements with Ukraine includes particular provisions regarding nuclear safety. In this connection, the recent Nuclear Safety and Security Summit in Moscow held by the G-7 countries, together with Russia, was an encouraging step in this direction. The countries that took part in the summit have committed themselves to working together to ensure the safety of nuclear power and to promote greater security for nuclear material. The summit communiqué recognises, inter alia, that all states have a legitimate concern that nuclear power is managed safely everywhere. The summit agreed a programme for preventing and combating ilicit trafficking in nuclear material. This programme aims to ensure increased co-operation among their governments in all aspects of prevention, detection, exchange of information, investigation and prosecution in cases of illicit nuclear trafficking.
The provisions of the Agreement with Ukraine commit the parties to co-operate, including in international fora, in addressing the problems that have arisen as a consequence of the Chernobyl disaster. Such co-operation shall address efforts in combating the radioactive contamination of air, soil and water; medical problems related to the impact of nuclear accidents on the public health; monitoring and supervising the radioactive condition of the environment; and training in the area of preventing nuclear accidents.
The parties to the PCAs grant each other most favoured nation status. Trade is to be free of quantitative restrictions, with certain exceptions, and discriminatory practices are banned. A safeguard clause is included, however, which may be invoked in the event of increased quantities of imports causing or threatening to cause substantial commercial injury. There is also provision for negotiations on anti-dumping measures.
The Agreements contain provisions relating to labour conditions, conditions of establishment and operation of companies, trade in services, transport, competition, intellectual property and financial and economic co-operation across a wide range of fields. Provision for co-operation in preventing illegal activities, including money laundering and drugs smuggling is also provided for. Pending ratification, the trade and economic aspects of the PCAs with Russia and Ukraine are being implemented by means of Interim Agreements concluded between the countries concerned and the European Community. Similar interim agreements are envisaged in the case of the other countries concerned.
I have no doubt the Agreements will assist in the further development of trade and economic ties with the countries concerned. This is, of course, a matter of very great interest to a country such as Ireland, given our high degree of dependency on external trade. The Agreement with Russia recognises that Russia is an economy in transition and that continued progress towards a market economy will be fostered by co-operation. Since 1990 GDP in Russia has fallen significantly. Industrial output appears to have halved since January 1992 and inflation has been severe since price controls were lifted in January 1992.
There have been more encouraging signs recently, however. According to the OECD economic survey of Russia, published in September 1995, the Russian economy could enter a period of rapid growth if macroeconomic stabilisation is successful and the momentum of liberalisation is maintained. Some upturn in GDP appears to have begun in the first half of 1995 and may accelerate to annual rates of up to 10 per cent in 1996.
Irish exports to the Russian Federation were almost £140 million in 1994 compared with £60 million in 1993. Exports for January to November 1995 reached £200 million. Beef exports came to over £50 million in 1994 and preliminary indications are that sales were even more buoyant in 1995. Russia is now our largest non-EU market for Irish beef. The other main exports in 1994 were automatic data processing equipment and metal ores — Alumina. Earnings from exports of services have also been very satisfactory and many Irish firms or organisations have successfully won consultancy contracts. This includes a number operating under the European Union's TACIS programme for technical assistance to the newly independent states in areas such as power generation, training, agricultural development, transport, aviation, software systems and financial/banking services. Irish companies have secured valuable technical assistance contracts since the inception of TACIS in 1990.
The Partnership and Co-operation Agreements now before the House are an important step forward in the European Union's relations with the countries of the former Soviet Union. Through the support which they will provide for the processes of political and economic reform, they will assist in the creation of new relationships based on shared values and on economic prosperity. I commend the agreements to the House for approval.
Turning now to the Europe Agreements with Estonia, Latvia and Lithuania, the House will be aware that, to date, Europe Agreements have been negotiated with nine central and eastern European countries. These are Poland, Hungary, the Czech Republic, the Slovak Republic, Romania and Bulgaria as well as the three Baltic Republics. The background to the Europe Agreements lies in the momentous events of 1989. In response to the new situation which emerged following the fall of the Iron Curtain, the European Council in Dublin in April 1990 decided to negotiate wide-ranging association agreements with the countries of the region on the understanding that basic conditions with regard to democratic principles and transition towards a market economy are fulfilled.
The Agreements with Poland and Hungary were approved by the Dáil on 30 October 1992. The Agreements with Romania, Bulgaria, the Czech Republic and the Slovak Republic were approved by the Dáil on 15 June 1994. These Agreements have been ratified by all the Contracting Parties and are now in effect. The Europe Agreements with the countries of central and eastern Europe provide a broad and comprehensive framework for relations with the EU. They provide for structured, high level political dialogue, phased movement on an asymmetrical basis towards free trade, and an intensification of economic co-operation geared to the needs of the reforming economies. The Agreements have ushered in a new era in relations between the EU and its eastern neighbours. They have helped stabilise the political and economic situation in the countries of the region and have contributed significantly to the impetus towards economic and political reform. The Agreements, also, constitute an important element in the new architecture of the Continent and in the movement towards European integration.
The general structure and content of the Agreements with Estonia, Latvia and Lithuania will be familiar to the House from our previous deliberations on the agreements with the other central and eastern European countries. I do not propose, therefore, to dwell at length on these features of the Agreements. The Agreements recall the historic links between the Baltic Republics and the member states of the European Union. There is a sense of pride shared by all in this House at the position adopted and maintained by Ireland during the years following the annexation of these countries by the former Soviet Union. That act of annexation was not recognised by the Irish people or its Governments. I take this opportunity to salute the peoples of Estonia, Latvia and Lithuania for successfully maintaining their national identities and to congratulate them on the recovery of their national independence.
The negotiation of the Europe Agreements with Estonia, Latvia and Lithuania was greatly facilitated by prior conclusion of free trade agreements between these countries and the European Union. The Europe Agreements are based on the commitment to intensify political and economic liberties and respect for human rights, including the rights of minorities. The main objectives are the further development of a free trade zone, and the promotion of economic relations and the advancement of economic, financial, cultural and social co-operation.
The Europe Agreements also cover the conditions attached to the movement of workers from the associated countries within the Union. They provide for non-discrimination for legally employed workers and for the co-ordination of social security systems. This is the case also with regard to the PCAs with Russia and others of the newly independent states. As a result of this, extra costs could arise to the Exchequer through the provision of old-age, invalidity and death benefits and for medical care purposes. It is considered, however, that such costs will be negligible.
There are also important provisions for political dialogue with the European Union which are intended to ensure increasing co-ordination on international issues.
The Agreements recognise the wish of the Baltic Republics to participate in the process of European integration, and, in particular, to accede to the European Union. Ireland's approach to enlargement of the European Union has been set out in detail in the Government's recent White Paper on Foreign Policy. Ireland welcomes the future enlargement of the Union as an historic opportunity to enhance European stability and confidence. We have no doubt but that enlargement will provide major economic opportunities, as well as significant political and economic challenges. We have already seen significant growth in our exports to the countries of central and eastern Europe, notably in manufactured goods and foodstuffs.
The European Council at Copenhagen decided that any European country which meets the required political and economic criteria shall be eligible to join the European Union. The capacity of the Union to absorb new members is also a consideration in this regard. The European Council at Essen agreed that the Baltic Republics will be included in the pre-accession strategy for the states of central and eastern Europe once the Europe Agreements are concluded. This strategy lays down a "route plan" for the central and eastern European countries as they prepare for Union membership. Its central component is the progressive preparation of the associated countries for integration into the Internal Market, with flanking policies to promote integration by means of financial assistance, dialogue and co-operation in the areas of common, foreign and security policy, the environment, justice and home affairs, culture, education and training.
The promotion of co-operation among these countries, their integration into the trans-European networks and the preparation of plans for the development of relations in the agricultural domain are also provided for. The European Union's PHARE programme is assisting the countries of central and eastern Europe to pursue the pre-accession strategy and some 5,000 million ECU have been allocated to PHARE to date.
The European Council at Madrid, last December, arrived at a number of important conclusions regarding future enlargement. Among these was the decision that following the conclusion of the Intergovernmental Conference which is addressing, inter alia, institutional questions in preparation for an enlarged Union, the Council will, at the earliest opportunity, and following receipt and consideration of the Commission's opinions on the applications, take the necessary steps for launching accession negotiations. The Council also expressed the hope that the preliminary stage of negotiations with the associated countries of central and eastern Europe will coincide with the start of negotiations with Cyprus and Malta, which are due to open six months following the conclusion of the Intergovernmental Conference.
The Baltic Republics have made considerable progress in a short time in consolidating democracy and in carrying through structural reforms in their economies. Rampant inflation has been brought under control and economic growth is now under way. I am happy to note our trade with the region, while small, is growing; exports to the three countries were worth £14 million in the ten months of October last year. Of greater significance, perhaps, is the growth in our exports of services. The Irish experience in economic development and in institution-building is particularly relevant to the needs of these countries and I am happy to note that Irish consultancies are very active in the region in a number of areas including tourism, civil aviation, telecommunications, rail transport, banking, power industry and management.
Since signature of the Europe Agreements with Estonia, Latvia and Lithuania in June last year, each of the Baltic Republics has formally submitted an application for membership of the European Union. These applications have, in accordance with the provisions of the Treaty on European Union, been referred to the European Commission for its opinion in the usual way. I have mentioned already, A Leas-Cheann Chomhairle, the pride we feel in the solidarity our people have shown with the Baltic Republics during the long period when they were denied their statehood. As for the future, we look forward to working closely with Estonia, Latvia and Lithuania in pursuit of our common goal of European integration and a peaceful and prosperous European continent.
To this end, I commend the Europe Agreements with the three countries concerned to the House for approval.