Failure to adopt Canada deal could ‘damage’ Irish economy

Ireland has been urged to ratify the EU-Canada trade deal for the good of the economy.

A failure to approve the deal – known as the Comprehensive Economic and Trade Agreement (Ceta) – could jeopardise jobs and Ireland’s reputation as an open economy, according to the head of the Irish Canada Business Association (ICBA).

“The immediate ratification of Ceta is of great importance to the Irish economy, and not doing so could be detrimental to its post-Covid recovery,” said ICBA chair Chris Collenette.

“Not ratifying an important trade deal like Ceta damages [Ireland’s] hard-earned reputation and signals to other potential investors that perhaps Ireland is not as open to business as it once was.”

The deal has boosted Irish exports to Canada by 58pc since it was provisionally applied in 2017, said Suzanne Drisdelle, chargé d’affaires of the Canadian Embassy in Ireland.

Irish beef exports have surged by 700pc and cheese exports are up 400pc. Ireland now has a €1.6bn trade surplus with Canada.

Recently, a Ceta-ordered audit forced two Canadian provinces to slash local alcohol levies, to the benefit of Irish whiskey exporters.

Ms Drisdelle said 75 Canadian companies are operational here, employing 15,000 people.

Mr Collenette said there were around 600 Irish companies exporting to Canada, helping to support 25,000 jobs there.

“Ceta presents a major opportunity for Ireland and Canada to build on these benefits and create jobs in both of our countries. This will be especially relevant as we both try to recover from the current pandemic,” Ms Drisdelle said.

The deal has been approved by the European Parliament and is currently being examined by the Oireachtas EU affairs committee, as it requires a Dáil vote.

So far, 15 other EU countries have approved it.

But the deal has split the Green Party, with TD Patrick Costello asking the High Court last month whether the deal requires a referendum because of a controversial chapter introducing an investor court system (ICS).

Critics fear an ICS could lead to large corporations suing the Government for loss of earnings caused by new climate or tax laws, and that this would take place outside of the Irish court system.

“I have no concerns and Canada has no concerns that this will be damaging to Ireland, to its democratic process, or the rights of its citizens, or the right for the state to regulate in its own interest,” said Ms Drisdelle.

Reuben East, a trade counsellor at Canada’s EU embassy, said the ICS system cannot overturn Irish laws or court decisions, and has specific provisions against ‘frivolous’ cases, as well as an appeals system in case of disputed decisions.

Ms Drisdelle said there had been some “confusion” about the ICS system in Ireland, which some people conflated with older, ad hoc investor-state dispute settlement systems (ISDS) in place in some other trade deals.

“Unfortunately, disputes are a reality in international business sometimes,” she said. "What the ICS does is provide an innovative approach to investment dispute resolution.

“One thing that may not be clear is that investors can, if they want, go through domestic courts for these kinds of issues. It’s not that Ceta prevents companies from doing this.”

Online Editors