As we have a quorum we will commence in public session. Before proceeding with business I remind members and those in the Gallery that mobile phones should be switched off completely for the duration of the meeting as they cause interference, even on silent mode, with the recording equipment in committee rooms. The purpose of today's meeting is to consider the proposed approval by Dáil Éireann of the terms of the agreement between the European Community and the Republic of South African and the framework agreements between the European Union, the Republic of Korea and the Republic of Indonesia. The Dáil ordered the referral of this proposal to the select committee on 28 March and under the terms of the order, the committee must complete its consideration and send a message to that effect to the Dáil not later than 23 April. The committee will consider the proposal but not make any decision with regard to it. On behalf of the select committee I again welcome the Tánaiste and Minister for Foreign Affairs and Trade, and I propose that we now hear opening remarks from him before discussing the proposal as a single item.
Trade Agreements: Motion
I thank the committee for the opportunity to discuss the three motions referred to the committee for consideration. The motions seek Dáil approval of the terms of EU international agreements with South Africa, the Republic of Korea and Indonesia. As members of the committee will be aware, the three agreements in question involve mixed competence. This means that some of the areas covered by the agreements, such as economic co-operation and trade relations, fall within the exclusive competence of the European Union, while others, such as justice and home affairs, remain within the competence of member states. For this reason, each EU member state is a party to these agreements and they can only formally enter into force after they have been ratified by all member states and endorsed by the European Parliament. In Ireland's case, the approval of Dáil Éireann is required prior to ratification whenever the terms of the agreement involve the possibility of a charge on public funds. As it can take a considerable length of time before ratification procedures are completed in all 27 member states, arrangements are usually made for some aspects of the agreements to be applied on a provisional basis pending their formal entry into force at a later date.
These new agreements with South Korea and Indonesia and the updating of the existing agreement with South Africa clearly signal the EU's intent to become a more effective global player. Partnership and co-operation agreements with the Philippines and Vietnam have recently been signed and one with Mongolia is awaiting signature. Negotiations on far-reaching agreements with Canada and Singapore are almost completed while trade talks are about to begin with Japan. In addition, the EU is moving towards the opening of negotiations with the US on a landmark transatlantic trade and investment partnership.
We can see that under the Lisbon treaty the EU has developed real instruments of foreign policy. The framework and the tools are now in place to enable the Union to more effectively defend its values, promote its interests and be more present in the world. Three years on from their creation, there is a fuller appreciation of the benefits of having a permanent President of the European Council, a High Representative for Foreign Affairs and Security Policy and a European External Action Service. We are seeing greater coherence in the Union's external actions and more clarity in its interaction with its global partners. This is important because in our globalised world the relationships that Europe builds with its key partners will determine its future prosperity. I am aware that the committee has taken a strong interest in the human rights clauses in EU international agreements and I welcome this.
I also wish to assure the committee that human rights concerns are fully integrated into the EU's approach to external relations. The purpose of agreements with partner countries such as those before us today is not just to increase trade and improve prosperity. They also provide a framework for the EU to promote the principles and values on which the Union was founded, which are democracy, respect for human rights and fundamental freedoms and the rule of law. Since 1995, the EU has implemented a policy of systematically including an "essential element" clause into all framework agreements with third countries, stipulating that respect for human rights and democratic principles forms the basis for the agreement. The essential elements clause provides the legal basis for positive measures, such as human rights dialogues, as well as for negative measures in case of serious violations of human rights.
I would like now to introduce the EU-Indonesia partnership and co-operation agreement to the committee for approval. This agreement was signed in 2009 and, as of now, it has been ratified by 24 member states. It was the first such agreement to be concluded by the EU with a country which is a member of ASEAN, the Association of South East Asian Nations. The completion of negotiations with Indonesia demonstrated the EU's desire to strengthen its links with the region and it has paved the way for negotiations with a number of other ASEAN members, such as Brunei, Malaysia, Philippines, Singapore, Thailand and Vietnam.
The partnership and co-operation agreement will allow the EU to strengthen political dialogue and co-operation with Indonesia. It will also provide the framework for closer co-operation in a wide range of policy fields, including trade and investment, environment, energy, education, science and technology, migration and counter-terrorism. In addition, a new EU-Indonesia human rights dialogue was launched in 2009, which has resulted in intensified exchanges on human rights issues of mutual interest. The agreement has also allowed for further development of intercultural exchange and engagement with moderate Islamic groups. It has reinforced the EU's development co-operation programme in Indonesia, which supports, among other areas, democratisation; good governance; poverty reduction, including education; improvement of the trade and investment climate; tackling environmental problems; and promoting ASEAN co-operation.
How does this agreement affect Ireland? Currently, Ireland's relationship with Indonesia remains underdeveloped. Our bilateral relations are maintained on a secondary accreditation basis from Singapore, with Indonesia's ambassador in London accredited to Ireland. My Cabinet colleague, the Minister for Public Expenditure and Reform, Deputy Brendan Howlin, recently visited Indonesia as part of an overall trade-focused trip to south-east Asia over the St. Patrick's day period. He was the first Irish Minister to visit Indonesia in over a decade.
Indonesia represents a wealth of opportunity for Ireland. With a population of 250 million it is the world's fourth most populous country. Its GDP in 2012 was €685 billion, making it the world's 16th-largest economy. It has recorded economic growth rates of over 6% per annum for the past three years and it is predicted that by 2020 it will be the world's sixth or seventh-largest economy. Trade with Indonesia is growing, albeit from a low base. In 2012, Ireland's total merchandise trade with Indonesia was valued at €162 million, an increase of 15% over 2011. Total trade in services is also rising from €141 million in 2010 to €204 million in 2011. There is considerable potential to increase trade and investment flows between Ireland and Indonesia from their current low levels. There are also opportunities in services, including education and tourism. This agreement provides part of the framework necessary for Ireland to take our relationship with Indonesia to the next level.
I will turn now to the EU-South Korea framework agreement. This agreement was signed in 2010 and to date it has been ratified by 20 member states. The framework agreement was signed at the same time the EU upgraded its relationship with South Korea to that of strategic partnership. This strategic partnership is underpinned by two agreements - the EU-South Korea free trade agreement, which is the first such agreement to be signed by the EU with an Asian country and which came into effect on 1 July 2011, and this framework agreement. The framework agreement promotes economic growth and sustainable development through co-operation in a broad range of fields, including business co-operation, competition policy, science and technology, education, agriculture and the environment. It also provides for strengthening co-operation in migration and combating organised crime and illicit drugs.
The framework agreement with South Korea will allow the EU to engage with this important partner to addresses a wide range of areas of mutual international concern, such as non-proliferation of weapons of mass destruction, human rights, co-operation in the fight against terrorism, climate change, energy security and development assistance. The EU-Korea relationship is probably the most developed in terms of political and economic relations compared to other EU relationships in the region. South Korea is and will remain in the future a major player in the global information and communications technology field, despite growing regional competition.
In what way will this agreement affect Ireland? Ireland's relationship with South Korea is firmly rooted in the economic sphere. Our embassy in Seoul was opened in 1989, with a strong focus on building economic relations, and that focus remains today. My Cabinet colleague, the Minister for Transport, Tourism and Sport, Deputy Varadkar, recently completed a visit to South Korea, where a key objective was to seek out new trade openings. The entry into force of the new EU- South Korea free trade agreement offers scope for Ireland to generate new and significant export opportunities. From information technology sectors to education to the food and beverage industry, South Korea represents a market in which Ireland is well positioned to do business.
Trade with South Korea is steady but we can always do more. Total merchandise trade between Ireland and South Korea in 2012 was valued at €689 million, exports were valued at €356 million and imports at €333 million. While this represents a small increase in overall trade year-on-year, of more significance is the fact that exports to South Korea increased by €56 million, or 18%, in 2012. As with Indonesia, considerable potential exists to further increase trade and investment flows between Ireland and South Korea from their current levels. There are also opportunities in the services sector that we will pursue, especially in education and tourism. This agreement provides part of the framework which has taken the EU-Korea relationship to the next level. Ireland can also use this framework to take our bilateral relationship to new heights.
I will deal now with South Africa. Relations have flourished since the birth of democracy in South Africa in 1994 and it is one of the EU's key partners in Africa and globally. The agreement with South Africa signed on 11 September 2009, which we are discussing today, amends the agreement on trade, development and co-operation which the EU signed with South Africa in 1999 and which came into effect in May 2004. The 1999 agreement, known as the TDCA, provides the legal basis for close relations on trade, development, economic co-operation and political dialogue. EU-South Africa relations were further consolidated with the establishment of a strategic partnership in 2007 which provided for enhanced political and policy dialogues and co-operation, as well as an overarching structure including annual summits and ministerial-level meetings.
The duration of the basic TDCA is unspecified but provision was made for its revision within five years. This agreement is the first such revision and it was completed five years after the TDCA came into force. It comprises four Articles. Article 1 outlines the amendments made to the original TDCA. Articles 2 to 4 are general technical provisions dealing with the languages in which the agreement is drawn up, approval procedures and subsequent entry into force.
I will now briefly outline the main amendments made to the original TDCA as set out in Article 1. Articles 1(3) to (7) provide for greater and deeper co-operation in the areas of information and communications technology, energy, mining and minerals, and transport, and add maritime transport as a new area of co-operation. Articles 1(9) to (20) update development co-operation arrangements bringing a clearer, more efficient and joint approach, reflecting new international commitments such as the millennium development goals agreed in 2000, and making some technical amendments. Articles 1(21) to (24) provide for deeper co-operation on science and technology, and on social issues, as well as reflecting work in international fora and updating and clarifying the language on environment and cultural co-operation. Article 1(25) aims at greater co-operation on addressing illicit drugs.
Co-operation on disarmament and non-proliferation is introduced via Articles 1(1), (2) and (27). Article 1(27) introduces seven other new Articles into the agreement dealing with the following: co-operation in the areas of combating terrorism, money laundering and the financing of terrorism; combating organised crime; illicit trade in and excessive accumulation of small arms and light weapons; prevention of mercenary activities; strengthening co-operation with the International Criminal Court; and co-operation on migration. Article 1(28) deals with the efficient provision of financial assistance via EU development and international co-operation budgets.
In summary, the amending agreement signed in 2009 updates and makes technical improvements to the original agreement with South Africa, while also deepening and expanding co-operation across a range of areas of political importance as well as justice and home affairs. It forms part of the strong foundations for ongoing positive EU relations with South Africa.
I thank the committee for its time. I am happy to recommend these three agreements for approval. They will broaden and deepen the EU's relationship with Indonesia, South Korea and South Africa on the basis of shared values and interests. They will help to raise the profile and visibility of Europe in the countries in question and in the Asia and southern Africa regions. This, in turn, will open up greater opportunities for Ireland to forge stronger political, commercial and trade links with, in the case of South Africa, a regional economic power and, in the case of Indonesia and South Korea, two countries in a region that is expected to drive global economic growth in the coming decade. I would encourage the committee to recommend to Dáil Éireann that the proposed motions be approved, so that Ireland is in a position to notify the Council of the completion of its ratification procedures.
I am happy to take questions at this point.
I thank the Tánaiste for a comprehensive statement on those three international agreements. We have seen the importance of resident embassies in South Africa and Seoul, where trade is growing steadily, while as the Tánaiste said, Indonesia represents a wealth of opportunity for Ireland. Are there any plans to open an embassy in Jakarta? The Indonesian ambassador from London has visited and his Government would support our opening an embassy in Jakarta and Indonesia opening an embassy in Dublin.
We keep our diplomatic representation under continual review. I am currently looking at what we need to do in terms of our representation abroad to better promote trade and investment opportunities. That includes looking at our current representation, areas where we need to be represented and ways to do that in a more joined-up way between the Department of Foreign Affairs and Trade and the agencies that represent the State abroad.
I welcome the Tánaiste's introduction of these motions to seek formal agreement. We are formalising agreements that have been in place for some years and I welcome that progress. It helps to deepen and expand co-operation.
South Africa has a population in excess of 50 million, while there are 250 million people in Indonesia. I do not know the population of South Korea but it has the 15th largest economy in the world. That demonstrates the need for Europe to have up-to-date agreements with those trading blocs. I am glad that in each of the agreements, aspects related to democracy, human rights, climate change and the rule of law, things we take for granted, are included. It is vital that the European Union is a force to ensure best governance and human rights protection in countries where we are involved in trade.
In view of the conference earlier this week, every trade agreement Europe is finalising or reviewing should take account of climate change and environmental issues. Food security is a huge issue. I am not as despondent as some about the huge challenges globally arising from the world's population increasing from 7 billion to in excess of 9 billion by 2050. When we think of the technological competence available today, competence that could not have been envisaged a few decades ago, and we consider the issue Deputy Maureen O'Sullivan regularly highlights here and in the Dáil, the huge untapped resources across the world, we can benefit from the huge technological advances to ensure we have proper access to unused resources, particularly when it comes to food production. It is incumbent on Europe, as a major trading bloc, to keep the stamp of food security, environmental issues and climate change to the fore in all agreements. That has been happening in recent years but we cannot underline the message too often.
I welcome these developments and the deepening of economic trade links with countries that have grown in affluence, albeit very unfairly spread in South Africa.
The economies of South Korea and Indonesia have been growing strongly and I hope that the vast majority of the population is benefiting by that growth. The committee will be aware of the considerable advances in education and in the ICT area, and the high skills level of the work force, for example, in South Korea. It is important that Ireland has up-to-date trade agreements with those, to some extent, newly-emerging economies.
I have two queries. Will the Tánaiste clarify whether an agreement, once ratified by Ireland, comes into force in advance of all of the EU countries ratifying it or remains in abeyance until everybody has ratified it?
The Chairman raised the issue of Indonesia. I am interested in that country. When I visited two years ago, there was the sense of a country really emerging, with an emerging middle class. They have the growth in their population under control to some extent. It is a large young population looking for middle-class trade. It offers significant opportunities for Ireland. In terms of opening an embassy, I wonder is it jumping the gun in advance of some kind of a trade agreement or should we circumvent that. Everybody talks about getting into China. There must be easier ways to develop trade than getting into China because everybody seems to be focusing on that. Certainly, Indonesia gave me the impression of a county that was ready to start trading with the rest of the world and where incomes were getting to the stage where they wanted all that the West had to offer and were more than willing to buy them.
Is the Minister confident that the essential elements clause in all framework agreements is strong enough on human rights and the democratic principles, and if there was a legal case, would it be strong enough?
I would make one other point about money laundering. Money laundering is conducted not only to finance terrorism. It is profit-driven by certain companies. It is also part of the corruption in certain countries. Will the agreement be strong enough to tackle the other aspects of money laundering?
We all would agree that the opening of an embassy brings benefits, not only in goodwill but in trade and ever other way. The concern relates to some agreements, not necessarily the ones here before us today but some that have been made in the past, such as free-trade agreements with countries with whose human rights record one would have difficulties, and a number of them jump to mind straightaway in that regard. The Minister wished to assure the committee that human rights concerns are fully integrated in the EU's approach to external relations, but there are those who would argue, for example, in the free-trade agreements with Israel and Colombia where there are difficulties still on-going, which comes first given that human rights is linked-in with this. Once it is agreed, is it signed up for good or does it include a clause by which the Minister can step back from it in 12 months stating we are not happy with the progress on human rights and fundamental freedoms? Is there such a process?
The Minister spoke of the agreement allowing us to engage in a number of areas. He spoke of South Korea and stated it allows us to engage in non-proliferation of weapons of mass destruction, etc. Are we encouraging agreements in that regard? There would be nothing stopping the EU or any other organisation conducting discussions on those issues without an agreement in place. Maybe I am reading it wrongly; it is the first time I have seen it.
There are some other areas of concern. Deputy Mitchell stated she would kick me under the table if I asked any more, but I am concerned about the linkage with trade. There is a responsibility with trade relating to the opening up. It is seen as giving the imprimatur to many of these regimes and I presume there is concern among many about countries with whom we trade and with whom we open relations.
Some of these are awaiting ratification since 2009 and I will not hold up the process. The Minister should get on with it. It is a great idea to establish these three trading links.
To follow through on Deputy Mitchell's point, is ratification by all 27 required in order for Ireland to start engaging? If we sign off here today, and in the Dáil next week, can the Government immediately enter into negotiations with these three trading partners?
First, on the populations covered, there are approximately 250 million people in Indonesia, 50 million in South Africa and 50 million in South Korea. The three agreements between them involve 350 million people and are quite significant.
In reply to Deputy Smith, the agreements provide for co-operation in the area of climate change. It is already built into them.
In response to Deputies Mitchell and Eric Byrne, the ratification of all member states is required for the agreements to come into force. One should bear in mind that these are EU agreements with the countries concerned. Of course, Ireland has separate bilateral relations and there is a trade relationship. These agreements provide a framework for the trade and investment relationship and then a wider framework including the essential elements which deal with such matters as human rights.
The most significant of those essential elements is what they do positively because they provide for a discussion and dialogue between the European Union and countries concerned, for example, on human rights issues. Of course, it is true that we all are free at any time to raise such issues bilaterally with countries and the European Union is free to do so, but doing it in a structured way which involves the whole trade relationship adds much greater clout to the discussion.
The European Union requires the inclusion of political clauses in agreements with third countries as a way of ensuring that the values and political principles of the European Union and its member states are upheld. The agreements with Korea and Indonesia contain two political clauses - one on human rights, democracy and the rule of law committing all parties to the implementation of their human rights responsibilities and the other on disarmament and non-proliferation of weapons of mass destruction requiring the parties to co-operate and contribute to countering the proliferation of such weapons. The original agreement with South Africa contained a human rights clause while the revised agreement we are discussing today has added disarmament and non-proliferation of weapons of mass destruction. The human rights clause is an essential element of the agreement. That means that the concessions which are contained in the agreement may be unilaterally suspended in the event of violation by any of the signatory countries.
On the monitoring of the human rights situation in the countries concerned, one of the key ways that the EU monitors the human rights situations in countries is through its delegations on the ground which work in close collaboration with the bilateral member state missions. The European Union maintains an open and frank dialogue on human rights with the representatives of countries with which it concludes co-operation agreements. In the case of Indonesia and South Africa, human rights are the subject of a dedicated dialogue with the respective Governments. These dialogues are forward looking and constructive and focus on concrete co-operation in the protection and promotion of human rights in the countries in question. At a multilateral level, the European Union actively engages with partner countries, including at the UN Human Rights Council where, of course, all countries are subject to universal periodic review.
I thank the Tánaiste and Minister for Foreign Affairs and Trade for his constructive engagement.