I have previously spoken in the Dáil about the damage TTIP (Trans Atlantic Trade Investment Partnership) will do to Ireland; it will encourage private education which will contribute to a more unequal society, damage the Arts sector as small Irish theatre companies (for example these companies will find it impossible to compete against the large long running big budget Broadway productions), the Investor State Dispute segment of the deal will give multi nationals and profit orientated companies the power to sue this state for decisions in the public good that will effect profitability and potential profitability, and this is just a fraction of the reasons TTIP is a bad deal for Ireland…
In saying how bad TTIP will be for Ireland it is incomprehensible the impact this trade deal would do to people in developing world.
To use the example of Columbia; TTIP will impact further on poor local farmers who have suffered discrimination, harassment and injustice at the hands of large multinationals operating in that country; with corruption at high levels of Government and constant intimidation of trade unions the consequences of this shady trade deal are frightening.
I notice the Ministers first response was to advocate how TTIP will improve GDP of developing countries, as we know from Ireland GDP is a monetary estimate of amount of trade taking place which has little reflection on the less well of in society.
To ask the Minister for Jobs, Enterprise and Innovation if he and his Department have concerns regarding the effects the Transatlantic Trade Investment Partnership will have on farmers in countries in the developing world, their fears of further harassment and intimidation from multinational corporations and the fears that giving more powers to large profit making corporations will cause further misery to local farmers.
- Maureen O’Sullivan.
R E P L Y
Minister for Jobs, Enterprise and Innovation (Mr Bruton TD)
According to assessments made by the EU Commission, a comprehensive EU/US free trade agreement could over time boost EU GDP by 0.5% per annum bringing significant economic gains as a whole for the EU. This converts into 400,000 jobs across the EU. An independent study commissioned by my Department carried out by Copenhagen Economics estimates that these benefits in Ireland will be proportionally greater than in the EU as a whole. It suggests growth in Irish exports of almost 4%, increases in investment of 1.5% and increase in real wages of 1.5%. It estimates somewhere between 5,000 and 10,000 additional export related jobs.
As regards impact on third countries, the independent study carried out by the Centre for Economic Policy Research (CEPR) for the European Commission indicates that TTIP could bring an overall estimated gain for third countries of between €46.6 billion (an increase of 0.07 % of world GDP) and €99.2 billion (0.14 % of world GDP), and an increase in exports from third countries of between 0.51 % and 1.04 %. This is because more growth in the EU and US would increase demand for exports from other countries of raw materials, components and machinery, finished products, and business services like customer support or after-sales care. The wider the scope of the Agreement, the more it would benefit the rest of the world. For example, if the EU and US harmonised technical standards in some areas, other countries could adopt these too which would mean that instead of having to produce to two sets of standards, they could produce to one set. That would in turn make trade easier and less costly. The CEPR study also found that low income countries would see GDP gains of some €2.4billion.
The EU also works in other ways to help developing countries benefit from trade and attract more foreign investment. One example is the Cotonou Agreement, which is a Treaty between the EU and the African, Caribbean and Pacific (ACP) countries, is aimed at the reduction and eventual eradication of poverty while contributing to sustainable development and to the gradual integration of ACP countries into the world economy. Another example is through our active involvement in the latest round – known as the Doha Round – of global trade talks between members of the World Trade Organisation, where one of the main goals is to help developing countries share in the growth in world trade.
The European Union’s aim for coherence between trade and development policies is clearly set out in the EU Commission’s negotiating mandate for TTIP where it states that the European Union’s partnership with the United States is based on common principles and values consistent with the principles and objectives of the European Union’s external action.
The mechanisms under the Cotonou Agreement are providing a positive framework for discussion between the European Union and African Caribbean and Pacific countries on the progress and possible impacts of TTIP. The most recent discussions took place at the ACP EU Council of Ministers on 28-29th May and at the Joint ACP EU Ministerial Trade Committee on 26th June.