This is the second time this matter has been raised on the Adjournment in recent weeks. I thank Deputy Kirk for his continuing interest in Ireland-US trade issues.
As I indicated during the previous debate on this subject on 1 May, my Department has been monitoring this proposal through our Embassy in Washington. The main proposal in the Bill now before Congress, which has the support of a number of members of the US House of Representatives, is to eliminate or to substantially reduce the duty applied to exports to the United States from Northern Ireland and Border counties. The Bill is not an initiative of the US Administration.
As I have said in this House on many previous occasions, I very much appreciate the efforts of the many friends of Ireland in US political and business circles to assist us in converting the potential of the peace process into lasting economic and social progress in Northern Ireland and the Border counties. This Bill should be seen as further welcome evidence of the goodwill which exists towards Ireland in US political circles.
I am aware, however, that even the Bill's proposers recognise the very real difficulties which may prevent the creation of their proposed free trade zone. A major stumbling block, in the first instance, would be the need to agree additional preferential arrangements for Irish exports over and above the current GATT. Ultimately, any special tariff arrangements would also require approval by both the European Union and the World Trade Organisation.
The Deputy will no doubt appreciate that in the context of a European Union committed to the Single Market and a level playing field for all member states, the likelihood of securing EU agreement to preferential tariff arrangements for one region of Ireland is, to say the least, remote. Our European partners would no doubt point to their already very generous recognition of the need for special treatment for Northern Ireland and the Border counties through EU financial support for the International Fund for Ireland and the special Programme for Peace and Reconciliation. The Border counties also benefit, of course, from funding provided under wider EU programmes such as INTERREG.
Even in the unlikely event of approval being forthcoming for preferential tariff arrangements, there are serious practical difficulties which would have to be taken into consideration. The creation of this free-zone would necessitate the introduction of a separate customs territory and customs border within this jurisdiction. This would be required in order to ensure that goods produced in other parts of this State were excluded from the preferential tariff treatment. This would not be a desirable development at a time when our emphasis is on dismantling barriers within this island.
Let me make it very clear that I am conscious that those proposing this idea are motivated by a genuine and sincere desire to contribute to the economic well-being of the Border counties. Furthermore, the United States is an important economic partner and I support the strengthening and deepening of our economic links.
In this connection, I recently had the opportunity of meeting with US business people participating in a US Department of Commerce mission to Northern Ireland and the Border counties. The Deputy may be aware that the mission, which focused on the information technology sector, visited his home town of Dundalk for two days and held a series of match-making sessions with representatives from Irish companies in the IT field.
The mission represented the latest step in a programme of economic cooperation between Ireland and the US which began with the appointment by President Clinton in December 1994 of Senator George Mitchell as his special economic adviser on Ireland. This was followed by the White House Conference on Trade and Investment in May 1995 which was a major and very welcome demonstration of US engagement with Ireland at the highest level. The conference provided an opportunity for one-to-one networking by Irish and US business people and for exploring avenues for potential co-operation such as joint ventures and other commercial link-ups. Since the White House conference the State agencies, including An Bord Tráchtála and Forbairt, have worked closely with their Northern Ireland and US counterparts in a continuous programme of followup activities such as the recent business development mission I have described.
The Deputy may also be aware that the US Administration is planning a follow-up to the White House Conference on Trade and Investment to take place in Philadelphia in the autumn. The aim of this conference will to be develop further the areas of potential economic co-operation identified at last year's conference with a particular focus on Northern Ireland and the Border counties. I assure the Deputy and the House that my Department and the agencies for which I have responsibility, including An Bord Tráchtála and Bord Fáilte, will continue to co-operate and work closely with the Department of Commerce in facilitating this important work.
