Michael P. Kitt
Ceist:51 Mr. M. Kitt asked the Minister for Agriculture, Food and Forestry the reports, if any, he has received on the impact on South Africa of subsidised EU beef exports; and if he will make a statement on the matter. [7637/97]
Written Answers. - EU Beef Exports.
I have received two reports from Trócaire on the impact of subsidised EU beef exports on the South African economy. One report by the European Research Office is a summary of statistical data and the second is a report by Christian Aid. Both reports outline the effects EU policies on subsidised beef exports are having on the beef industry and the overall agricultural development of South Africa and neighbouring countries.
Export refunds to South Africa have already been reduced by 17.5 per cent since the beginning of the year. Because of the revaluation of the Irish Agricultural conversion rate against the ecu this reduction translates into a 22 per cent cut in Irish currency and this has significantly diminished the competitiveness of Irish beef on this market. Given that Ireland is the major European supplier to the South African market, these developments will lead to a reduction in the volume of European exports to South Africa. The total removal of export subsidies as suggested in the reports would jeopardise this trade, resulting in the loss of this market to our competitors, particularly from South America and Australia.
I am conscious of the need to ensure that the export refund system does not undermine the economic and agricultural development of the region. The European Union, through the Lomé Convention, provides significant export opportunities under preferential arrangements for the beef industry in countries such as Namibia, Botswana, Swaziland and Zimbabwe which also supply the South African market. These countries did not make full use of the export opportunities available to them under these arrangements in 1996, which suggests there are reasonable market outlets available to them locally or in South Africa.