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Comprehensive EU-US agreement could lead to 1.1% increase in Irish GDP – Bruton

Copenhagen Economics findings come as part of major Dept of Jobs conference

on Transatlantic Trade and Investment Partnership

20th June 2014

A comprehensive trade and investment agreement between the EU and the US

could lead to a 1.1% increase in Irish GDP, a study by Copenhagen Economics

has found.

The findings are published to coincide with a major conference on the

Transatlantic Trade and Investment Partnership (TTIP) convened in Dublin by

the Minister for Jobs, Enterprise and Innovation, Richard Bruton TD.

Minister Bruton, who this time last year as part of the Irish Presidency of

the EU Council secured formal agreement among the 28 member states to open

talks with the US on the TTIP, convened the conference in order to discuss

with stakeholders the potential benefits of such an agreement for the Irish

economy.

The conference in Dublin Castle this morning is being addressed by Ignacio

Garcia-Bercero, the EU’s Chief Negotiator on TTIP, on progress during the 5

rounds of talks with the US which have happened in the past year.

Among the other findings of the Copenhagen Economics Study are included:

· Sectors which would particularly benefit in Ireland include key

employers like life sciences, ICT and manufacturing

· Ireland’s goods and services exports would benefit from reductions in

tariff as well as non-tariff barriers

· Irish SMEs would benefit particularly

· Other benefits for Ireland would include increases in exports (2.7%)

real wages (1.4%) and investment (1.6%)

Speaking today (Friday), Minister Bruton said:

“At a time of high unemployment, both in Ireland and across the EU, we must

grab with both hands any opportunities for job-creation. Major stimulus

spending is not an option, and so our focus must be on increased trade and

exports. In particular, huge potential is offered by the EU US trade

agreement currently in negotiation – official studies show that a

comprehensive trade and investment partnership could create 400,000 extra

jobs in the EU.

“Ireland has particularly strong economic links with the US, with over

100,000 people employed in 500 US companies here, and Irish companies

exporting over €1billion in goods and services to the US every year. We

knew at the time of the Presidency last year when the EU mandate was

secured that Ireland stood to benefit disproportionately if an agreement

was secured. The findings by Copenhagen Economics published today show that

the benefit to Ireland would be more than double the EU average, with 1.1%

added to GDP.

“This would mean the creation of approximately 8,000 extra jobs across the

country. Benefits would accrue particularly to big employer sectors

including life sciences, ICT, food and manufacturing, and SMEs and

consumers would also benefit.

“Today’s conference, organised by my Department, is a great opportunity for

farmers, trade unions, business-people, public officials and other

stakeholders to hear first hand the progress of negotiations and the

potential benefits of this agreement.

“We need to pursue any possible source of employment with single-minded

determination. A comprehensive free trade agreement between the EU and the

US would bring huge benefits to Ireland and I believe we should do

everything possible to support its early conclusion”.

Media Contact Information –

Department of Jobs, Enterprise and Innovation – Press Office ph: 631 2200,

email press.office@djei.ie or Conor Quinn, Press Advisor, 087-3743783

NOTES FOR EDITORS

Copenhagen Economics – Extracts from findings:

This is an EU-US agreement … not Ireland-US

● TTIP will boost transatlantic economy by €90 bn and €120 bn in US and EU

respectively (CEPR, 2013)

● Realising an untapped potential

● Limited trade diversion

● Trade with third parties will go up

TTIP will change how Irish firms:

● …trade with the US

● …trade with rest of EU

● …trade with the rest of the world

Trade liberalisation – and in particular NTB reductions – has different

impacts on SMEs and MNEs

Main economic impacts in Ireland: Positive

● Overall export up

● National income up

● GDP increase

● Production will increase

● Real wages will improve for all skill groups

● Investment increase

Opportunities for Ireland

· Strengthening Ireland’s position as hub for MNEs in the EU market

· Increased MNE exports to both the US and EU market

· More attraction of FDI (MNEs)

· Improving market access in the US for Irish SMEs

· Increased demand and competition in EU market

· Lower input costs enhances Ireland’s attractiveness as hub