7.6 International Trade Developments

7.6 International Trade Developments

Introduction/ Overview International Trade plays a vital role in the development of the Irish agri-food sector with exports to over 180 countries globally. The international rules-based trading system at the World Trade Organisation and preferential trading terms provided by Free Trade and Economic Partnership Agreements negotiated by the EU with 3rd country trading partners play an important role in supporting the Irish agri-food sector’s ambition to grow the value of its exports.

The United Kingdom’s exit from European Union in 2022 continued to present a number of challenges for agri-food exporters to that market, the largest market for Irish agri-food exports. The ongoing uncertainty associated with the postponement of United Kingdom import control requirements and issues related to the implementation of the Northern Ireland Protocol also contribute to the challenges.

A number of EU Free Trade Agreement negotiations with third countries made important progress in 2022, including political agreement on the conclusion of a new agreement with New Zealand. This agreement with New Zealand also demonstrated the key contribution these agreements can make to action on climate change by providing for stronger and more enforceable sustainability commitments and prioritising a specific list of green goods and services for greater trade liberalisation.

While supportive of trade liberalisation and the opportunities presented to a small, open exporting country, Ireland continues to take a balanced approach to EU Free Trade Agreements, in particular that the provisions of such agreements have due regard to sensitive EU agri-food sectors such as beef, sheepmeat and dairy.

A series of in person, Ministerial led, Trade Missions were undertaken in 2022 to the Middle East, US, Mexico, Japan, Singapore and Vietnam. These Trade Missions were targeted at promoting Irish agri-food products in key priority growth markets.

Figure from page 236

Brexit/Northern Ireland Protocol The post Brexit EU-UK Trade and Cooperation Agreement (TCA) has been in force since 1 January 2021. As part of the agreement, the United Kingdom decided to remain outside of the EU Customs Union and Single Market and this has brought about significant changes to the EU-UK trading relationship, specifically to the application of customs and sanitary and phytosanitary requirements. Since then, DAFM and industry have remained fully focused on implementing these changes.

In April 2022, the United Kingdom again postponed the introduction of its new sanitary and phytosanitary (SPS) import controls to be applied to imports of EU goods, the third such postponement since the end of the Brexit transition period. The new United Kingdom import controls, including export health certification requirements, were due to commence from 1 July 2022 but have been deferred until early 2024. As these new requirements will apply to EU imports of agri-food products, DAFM will prepare extensively for these changes in conjunction with industry.

During 2022 and into 2023 the EU continued to engage with the United Kingdom on issues raised relating to the implementation of the Northern Ireland Protocol. In February 2023, the EU and United Kingdom announced agreement on the Windsor Framework, which provides for a number of new provisions to address the concerns raised by stakeholders in Northern Ireland in respect of post Brexit trading arrangements. It is hoped that the solutions agreed in the Windsor Framework will provide an improved context for the positive development of the future EU- United Kingdom relationship and bilateral cooperation with the United Kingdom.

Comprehensive Economic Trade Agreement (CETA) The Comprehensive Economic and Trade Agreement is a free-trade agreement between Canada and the European Union and its member states. Following a process of legal review, this agreement was signed on 30 October 2016. On 15 February 2017, the European Parliament gave its consent for CETA and on the 21 September 2017, the agreement entered provisionally into force. As such, most of the agreement including its trade aspects now apply. The overall outcome is satisfactory for Ireland’s agri-food sector with increased access to the Canadian market for EU beef and dairy products.

The agreement will enter into force fully when all EU Member State parliaments have ratified the agreement. As of February 2023, nine EU Member States have not ratified CETA: Belgium, Bulgaria, Cyprus, France, Hungary, Ireland, Italy, Poland, and Slovenia. The German Parliament ratified CETA in December 2022.

The Government is committed to the ratification of CETA, but there is a current legal process which has delayed this ratification process. In November 2022, the Supreme Court ruled by a majority of four to three that the Constitution precludes the Government from ratifying CETA as Irish law stands. The specific findings of the Court relate to provision for arbitration system for investments, which could impact on sovereignty provisions of Constitution.

The Department of Enterprise, Trade and Employment are currently reviewing the implications of the Supreme Court decision and next steps to allow the ratification process progress.

World Trade Organisation (WTO) – 12th Ministerial Conference The 12th WTO Ministerial Conference took place in Geneva from 12th to 17th June 2022, where Ireland was represented by the then Tánaiste and Minister for Enterprise, Trade and Employment, Leo Varadkar TD. For the first time in a number of years, a package of agreements was secured which have re-enforced the position of the WTO as a key institution for the global rules-based system. The Ministerial Conference agreed commitments to WTO reform, specifically revised dispute settlement mechanisms by 2024, a Fisheries Subsidies Agreement and a Food Security Declaration. From Ireland’s perspective, an invigorated WTO system is important to the Irish economy, which is based on the effective operation of the open, consistent, and fair global trading system which WTO agreements support.

Ireland strongly supported the outcomes of this Ministerial Conference. In particular from a fisheries perspective, the Fisheries Subsidies Agreement is seen as an important step in supporting global efforts to improving the sustainability of fish stocks and our oceans by prohibiting support for illegal, unreported, and unregulated fishing and bans support for fishing in overfished stocks. The agreement also takes a first, but significant step towards curbing subsidies for overcapacity and overfishing by ending subsidies for fishing on unregulated high seas.

EU-Chile The EU and Chile concluded negotiations on the modernisation of a previous trade deal and announced political agreement on an Advanced Framework Agreement on 9th December 2022. This agreement is broken down into two parts – an “Interim Free Trade Agreement” which can come into effect following internal EU ratification procedures and a “Comprehensive Agreement” which will require ratification from parliaments from all member states.

The impact on sensitive agri-food products is low in comparison with some other free trade agreements. Nonetheless, there is an opportunity for the Irish dairy industry in Chile, which has been developing in recent years, through the removal of tariffs on EU dairy products.

The draft text of the Advanced Framework Agreement has been published by the EU Commission and is currently undergoing translation and legal scrubbing.

EU-Mercosur Association Agreement Political agreement was announced on a new Free Trade Agreement between the EU and the Mercosur trade bloc in June 2019 following over 20 years of negotiations. The EU Commission had hoped to put this agreement forward for ratification in 2022, however concerns were raised by a number of EU member states, including Ireland. Concern was noted regarding the need for additional enforceable commitments on sustainability and environmental protections, including climate and deforestation, contained within the agreement. The ratification process has not been activated yet.

When the final text of EU-Mercosur agreement is presented to EU Member States for ratification, Ireland’s position will be informed by its assessment of the additional sustainability commitments secured by the EU, as well as by the findings of the Economic and Sustainability Impact Assessment of the agreement commissioned by the Irish Government.

EU-Australia Negotiations on reaching a new trade deal between the EU and Australia commenced in 2018 and have continued, with the 14th round of negotiations having concluded in February 2023. In its latest report, the Commission stated that there was a shared commitment towards an ambitious and comprehensive agreement from both parties.

To date, market access for the most sensitive agri-food products from an Irish perspective have not been discussed in negotiations. Ireland continues to request that any market access offer made by the Commission does not undermine EU markets for the most sensitive product categories, including beef and sheepmeat. This agreement could provide for potential opportunities for Irish exporters in the areas of pigmeat and beverages, of which Australia imports a significant amount.

A further intensification of negotiations is expected in 2023, with an aim to conclude negotiations.

EU-India Free Trade Agreement Negotiations The EU and India agreed to resume negotiations for an ambitious and comprehensive free trade agreement in May 2021 and launched separate negotiations for an Investment Protection Agreement and an Agreement on Geographical Indications (GIs). The third round of these renewed negotiations took place in late 2022 but are still considered to be at an early stage.

Figure from page 239

Ireland currently has limited exports to the Indian market, with beverages being our main export. A free trade agreement with India could represent a significant opportunity to develop into one of the world’s largest marketplaces.

The fourth round of negotiations is scheduled to take place in March 2023.

EU-Republic of Korea Free Trade Agreement The EU-Republic of Korea Free Trade Agreement was formally ratified in December 2015.

It went further than any previous agreements in lifting trade barriers and was also the EU’s first trade deal with an Asian country. The FTA fully liberalised nearly all EU agricultural exports. For example, duty free access for wine from day one, whiskey in year 3 and there were valuable duty-free quotas for products like cheese from entry into force of the agreement.

In November 2022, “Irish Cream” joined “Irish Whiskey/Irish Whisky” as a protected GI under this Agreement granting these products new protections on the Korean market.

New Market Development The pursuit and development of markets for Irish agri-food exports is an ongoing and central component of the strategic development of the agri-food sector. Food Vision 2030 includes ambitious growth targets for the value of Irish agri-food exports and a focus on new market development. In recent years, DAFM commissioned Bord Bia to undertake a market prioritisation project for meat, dairy, prepared consumer foods, beverages, and seafood. The outputs of these studies inform DAFM policy in this area, as well as the allocation of Bord Bia resources in terms of its route-to-market support services for client companies including market study visits, trade missions, trade fairs and inward buyer visits. It is also helps to inform client companies in their thought process and planning. The promotion of Ireland’s high-quality, safe, nutritious, and sustainably produced food remains a core objective of DAFM and its agencies.

Trade Missions A key component to support the sector in meeting its growth ambitions are high-level Ministerial-led trade missions. Food Vision also supports the development and diversification of international markets for Ireland’s high quality sustainably produced agri-food.

Despite the challenges presented by the aftermath of the Covid-19 pandemic, 2022 saw a return to in-person trade missions by DAFM’s Ministerial team. Trade missions to priority markets and leading key customer meetings over the last year included:

In February 2022, Minister McConalogue participated in Food, Agriculture and Livelihoods M Week at EXPO Dubai 2020. While in the UAE, the Minister lead successful trade engagements at Gulfood 2022. This trade mission was then complemented by a separate Trade Mission to Saudi Arabia.

In April 2022, Ministers McConalogue and Heydon led successful trade missions to the M USA and Mexico. Relevant trade and high-level market access engagements were held in Chicago, Columbus Ohio, Washington D.C., San Antonio Texas, and Mexico City.

In July 2022, Minister Hackett led a successful trade mission, specifically targeting the M organic sector, to BIOFACH in Nuremberg in Germany and with further trade meetings in Munich.

In September 2022 both Ministers McConalogue and Heydon led successful trade missions M to Japan, Singapore, and Vietnam.

In December 2022, Minister McConalogue and Heydon hosted Bord Bia trade receptions M in the Irish Embassies in London and Paris respectively.

These Missions included participants from across the agri-food sector and featured extensive trade promotion event contacts, high level engagement with senior executives in leading customers for Irish food, as well as high-level political discussions. Government agencies such as Bord Bia, Sustainable Food Systems Ireland, Irish Thoroughbred Marketing and Enterprise Ireland supported and participated in these trade missions to sustain and expand our trade profile overseas. These engagements covered a wide range of agri-food products across the meat, seafood, dairy, beverage, racing and agri-tech sectors.

A further full programme of Ministerial trade missions is scheduled for 2023. These overseas trade promotion engagements will be focused on China, Nigeria & Senegal and the Philippines & Malaysia.

		8 CHAPTER		Environment
Agriculture GHG emissions The Sectoral Emissions Almost decreased in 2022 by Ceilings has set a 41,000 1.2% or 0.29 target of 10% farmers Mt CO2eq, of national gas demand, applied to participate in the to come from Biomethane compared to 2021. National Liming Programme by 2030.