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EU Trade Agreement with Canada estimated to add €12billion to EU GDP – Minister Bruton

Minister welcomes major new opportunity for EU and Irish exporters

Richard Bruton, T.D., Minister for Jobs, Enterprise and Innovation today [Friday] welcomed the conclusion of long-running talks on a trade and investment protection agreement with Canada.

Speaking from Luxembourg where he is attending a meeting of EU Trade Ministers, Minister Bruton said:

“This agreement with Canada is really good news for our exporters. New markets will be opened in Canada and tariffs on nearly all of our exports there will be removed. The deal is good news for the economy and nearly every business sector in Ireland will benefit.”

“Canada is a very important trading partner for us. Canada represents a natural trading opportunity for many of our ambitious and innovative enterprises. It is a market with the same language, similar economic traditions and enjoying strong growth.

“Expanding our €2.7 billion trade with Canada will create more jobs and help accelerate our economic recovery. This deal will bring our business and economic relations with Canada to a higher and more profitable level. Our goods exports to Canada have more than doubled since 2006. This new agreement will help exporters in every part of Ireland win more business across the Atlantic. This agreement has the potential to add over €200 million in our bilateral trade with Canada. ”

Commenting on the wider benefits of the agreement the Minister said:

“This deal is a major milestone in making it easier and less costly to trade and invest with one of the most important Atlantic economies. Under the Irish Presidency of the EU, a mandate was given to the EU Commission to start economic partnership talks with the U.S. This agreement with Canada not only gives an important boost to transatlantic commerce and economic integration, it gives a boost to the talks now underway with the U.S.”

Recognising that the new trade arrangements give rise to concerns among farmers the Minister said:

“I appreciate that there are concerns among Irish farmers in relation to this deal. The concessions obtained on dairy are welcome and potentially valuable for Irish farmers. In relation to beef, it is important to point out that it will take some time for increased competition to become evident. Irish beef is globally recognised as being of the highest quality and sustainability. It has gained an unparalleled reputation that supports the rapidly increasing exports in this sector. Government policy is actively pursuing this, as most recently evident in the world-leading beef genomics programme announced by Minister Coveney. I believe that our food producers will rise to any competitive challenge”.

Note for Editors:

Total trade with Canada in goods and services amounted to €2.68 billion in 2012.

Ireland exported €2.026 billion in goods and services and imported €655 million in goods and services from Canada in 2012.

Exports to Canada are growing and are important to the Irish economy. In 2012, Canada was our 14th largest market for goods, up from 16th position in 2011.

Ireland’s goods exports to Canada have more than doubled since 2006, growing from €375 million then to €781 million in 2012.

Ireland’s main exports to Canada are Medical and Pharmaceutical products worth €276 million in 2012 and Organic Chemicals valued at €254 million.

Our services exports have increased from €536 million in 2006 to over €1.2 billion in 2012.

The Agreement is expected to increase two-way bilateral trade in goods and services by €26 billion between the EU and Canada.

Its impact of EU GDP is equally important giving it a potential boost of about €12 billion a year.