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Jobs Protection

Dáil Éireann Debate, Tuesday - 29 January 2019

Tuesday, 29 January 2019

Ceisteanna (275)

Billy Kelleher

Ceist:

275. Deputy Billy Kelleher asked the Minister for Business, Enterprise and Innovation the steps she is taking to protect businesses and jobs here at EU level with respect to upcoming EU-USA trade discussions on a sectoral basis. [3805/19]

Amharc ar fhreagra

Freagraí scríofa

On 25 July 2018, President Juncker and President Trump met in Washington to launch a new phase in the relationship between the US and the EU. They agreed to:

- work together toward zero tariffs, zero non-tariff barriers and zero subsidies (on non-auto industrial goods) and to work to reduce barriers and increase trade in services, chemicals, pharmaceuticals, medical products, as well as soybeans (the EU will import soybeans from the US);

- strengthen strategic energy cooperation to potentially increase US imports of (LNG) to diversify the EU's energy supply;

- launch a close dialogue on standards to ease trade barriers, reduce bureaucratic obstacles, and slash costs; and

- work closely together with like-minded partners to reform the WTO and to address unfair trading practices, including intellectual property theft, forced technology transfer, industrial subsidies, distortions created by state owned enterprises, and overcapacity.

The meeting was in response to a shift in the direction of US trade policy which had seen the US impose tariffs on steel (25%) and aluminium (10%) imports from the EU to the US from 1 June 2018, following the expiry of a temporary exemption. The US measures were introduced following a, "Section 232", investigation by the US Department of Commerce, into the effect of imports of steel and aluminium on US national security. The EU did not accept the basis for the US action and responded, after initial dialogue with the US Authorities failed to resolve the matter. Our collective response comprised:

- the launching of proceedings by the EU against the US at the WTO for breaching WTO rules, as the measures are designed to protect US domestic industry from import competition and not a national security measure;

- introducing rebalancing tariff measures through removing existing tariff concessions and applying 25% duties on a number of US imports to the EU in a proportionate manner; and

- introducing provisional safeguard measures, following an investigation, for a period of 200 days by imposing a tariff rate quota and an additional 25% tariff on imports of certain of steel products from third countries, with the exception of some developing countries with limited exports to the EU. These safeguards are likely to be made definitive in the coming weeks.

The EU is unanimously of the view that these US tariffs, which remain in place, are unjustified and in conflict with WTO rules. Ireland has fully endorsed the EU strategy, and as part of this process, I met with US Commerce Secretary Ross and other US actors on 7 May 2018 to discuss the issues.

On 10 September 2018, EU Trade Commissioner Malmström met U.S. Trade Representative, USTR, Lighthizer to initiate the Executive Working Group, EWG, established to improve trade relations between the US and EU and address each of the topics in the Joint Statement issued by Presidents Juncker and Trump at their July meeting. The EWG has met a number of times since, to discuss the scope of future formal negotiations, most recently in Washington on 9 January 2019.

I and my other EU Trade Minister colleagues have discussed the issue of EU-US trade relations at our Council meetings in October and November 2018. Ireland has made clear to the European Commission that agriculture must remain excluded from the scope of any future agreement with the US, and I have spoken with Commissioner Malmström, who confirmed to me that this is the European Commission position. Indeed, the EU has made this clear on several occasions.

On 18 January 2019, the European Commission adopted proposals for negotiating directives for its trade talks with the United States: one on conformity assessment, and one on the elimination of tariffs for industrial goods (excluding agricultural products). As part of its commitment to transparency, the European Commission published the draft mandates at the same time as submitting them to the EU Member States. These mandates - or negotiating directives - will be discussed and agreed by Member States in Council to ensure that we are satisfied that EU - including Irish - interests are fully represented. Once approved, they should form the basis that will hopefully see productive and substantive formal negotiations in these areas commence soon after, which would also see the removal of US steel and aluminium tariffs and the EU rebalancing measures. Additionally, it is important to note that while these negotiations are proceeding, both sides are committed to not introducing new tariff measures and if the US were to so do, the proposed mandates make clear that the EU will suspend the negotiations and consider an appropriate and proportionate response.

The USTR also published its Negotiating Objectives this month and is in dialogue with Congress on them.

As with all trade negotiations, my Department will continue to prioritise Ireland's interests and play a full part, especially through the EU's Trade Policy Committee, in securing a mutually beneficial deal between the EU and US. As part of the effort to prioritise Ireland's interests in any future negotiations, my Department has commenced a consultation process with relevant stakeholders on the proposed mandates.

Ireland and the US have a significant bilateral relationship based on the same values and interests that has proved indispensable for the prosperity of both sides of the Atlantic. Ireland and the EU remain fully committed to a continued strong partnership with the US as equal partners. The de-escalation in trade tensions between the US and EU achieved by last July's accord has been of benefit to Irish trade interests and jobs. Equally, continuing to dialogue with the US to achieve a possible agreement on the elimination of tariffs for industrial goods, would be a positive development for Irish trade and jobs.

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