Update on International Trade Negotiations
Ireland's approach to EU Free Trade Agreements (FTAs) with third countries, including insights on the prospects and challenges for the Irish agri-food sector. Updates on FTAs with Mercosur, New Zealand, Australia, and Chile, highlighting key negotiations and impact assessments.
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Presentation Transcript
Beef Taskforce -Update on International Trade Negotiations Louise Byrne, Brexit and International Trade Division June 3, 2021
Free Trade Negotiations (FTAs) Ireland s approach to EU FTAs with third countries. Recent EU FTAs offer good prospects for the Irish agri-food sector and we must leverage the opportunities provided by these Agreements. Preferential Utilisation Rates (PUR)- 2019 data from EU Commission shows: overall PUR on Ireland s agri-food exports to FTA partners of 79% overall PUR on agri-food imports to Ireland from FTA partners of 95% FTAs may also pose challenges to Irish agri-food sector.
Mercosur Political agreement announced on 28 June 2019. Agreement included a significant TRQ for beef phased in over a period of 6 years. Sustainability Chapter. SPS Chapter. Bilateral Safeguard Measures. Next Steps with the Agreement. Commission can decide to provisionally apply those aspects of the Agreement in respect of which it has exclusive competence. Economic and Sustainability Impact Assessment (ESIA) for Ireland is being finalised. 3
New Zealand Ten rounds of negotiations so far, most recent round took place by VC 22-26 March 2021. The EU market access offer presented at Rd 8 included sensitive lines such as beef, dairy and sheepmeat and includes TRQs of limited volume. NZ disappointed with the EU market access offer. 11th negotiating round is set to take place from 28 June to 2 July 2021-Possible new (and improved) market access offer to be tabled. New Zealand have more to gain than Ireland in these talks from an agri perspective.
Australia Ten rounds of negotiations have taken place with Australia- last one on 9-10 March 2021 by VC. 11th round ongoing 1-11 June by VC. The EU made an initial market access offer during the 5th round, which excluded the most sensitive agricultural tariff lines. A second tariff offer will not be discussed until closer to the end of the negotiations. Main defensive interest in any FTA with AU is beef. As with New Zealand, Australia have more to gain than the Ireland in these talks.
Chile Ten rounds of negotiations have taken place to date with the most recent round taking place during January 2021. On the 18th May 2021 Cion circulated 2nd EU draft market access offer which they hope to present at latest round talking place this week. Beef, Pigmeat ,Sheepmeat and Poultry were seen as acceptable-New TRQ s shall aggregate and replace quotas. We await sight of the initial Chilean market access offer.
Other EU Trade Negotiations Indonesia-10 Rounds so far, talks progressing with last round in 26 June 2020. India-negotiations are expected to restart in 2021. 7
UK Trade talks EU UK Trade & Co-operation Agreement ratified. The medium to long term impact of Brexit- UK can determine their own trade policy. Does UK experience in trade negotiations match their ambitions and what risks for Ireland and our agri-food sector? The world is watching the UK! What can we do? Continue to reduce our reliance on UK market Irish Export Destination 2016 2020 Export value B 2016 Export value B 202 UK 40% 37% 5.04 5.23 EU-27 30% 31% 3.74 4.54 Rest of World 30% 32% 3.72 4.33 12.4 14.1 - - Differentiate ourselves from and be better than the competition Monitor trade talks and respond appropriately
