Select Committee on Foreign Affairs and Trade, and Defence debate -
Thursday, 25 May 2017

International Trade Agreements: Motion

Chairman

Before proceeding to the business of the meeting, I remind members and those in the Gallery that mobile phones should be switched off completely for the duration of the meeting as, even in silent mode, they cause interference with recording equipment in these committee rooms. The select committee meeting is being broadcast on the Oireachtas television channel and the Internet. The purpose of today's meeting is to consider the motion referred to the select committee by Dáil Éireann on approving the terms of the framework agreement on comprehensive partnership and co-operation between the European Union and its member states, of the one part, and Mongolia, of the other part. Under the terms of the Dáil motion of 9 May 2017, the committee must consider this matter and, having done so, report back to the Dáil not later than 25 May 2017. On behalf of the select committee, I welcome the Minister and his officials.

We will hear the opening presentation from the Minister and take questions from members thereafter. I take this opportunity, on behalf of the committee, to convey to the British Ambassador and the people of Manchester and Britain our sincere condolences following the brutal and senseless attack on the people of Manchester last Monday night. On behalf of the committee, I wrote to the British Ambassador on Tuesday morning conveying to him our deepest condolences and asking him to pass them to the local communities affected by this senseless act of terrorism. As a committee, we also express our sympathy to Britain in general as it deals with yet another cruel and brutal attack on society. It was a heinous and barbaric act, targeting young and innocent people. I want to put on record our committee's abhorrence of these evil acts.

Minister for Foreign Affairs and Trade (Deputy Charles Flanagan)

I thank the committee for the invitation to attend. I begin by associating myself with the Chairman's expression of sympathy and I add my own condolences and those of the Government to the families of victims of the appalling attack in Manchester on Monday. On Tuesday I spoke with the British Foreign Secretary, Mr. Boris Johnson, and told him that the Dáil and Seanad were united in expressing solidarity and recording our horror and disgust at this terrible act. As of now, there are no reports of any Irish citizens confirmed among the victims. I have received reports from our embassy in Jakarta, Indonesia, of a suicide bombing there last night. I abhor such cowardly attacks. What happened in Jakarta is an affront to the Indonesian Government and the efforts to counter extremism and promote inclusion and tolerance in that country. Both Ireland and the entire European Union strongly support that. I understand that there are no reports of any foreign casualties in that case. I join the Chairman in acknowledging that our thoughts and prayers are with all those affected in Manchester and Jakarta.

Dáil Éireann has been asked to approve the following motion:

That Dáil Éireann approves the terms of the Framework Agreement on Comprehensive Partnership and Cooperation between the European Union and its Member States, of the one part, and Mongolia, of the other part, signed at Ulaanbaatar, Mongolia, on 30 April 2013, a copy of which was laid before the Dáil on 11 April 2017.

Ireland’s political, economic and cultural contacts with Mongolia have been limited in the past. The Irish community there is very small and, for the most part, transient. There is also a small community of Mongolians who have studied or worked in Ireland, which retains a strong affinity for Ireland and its people. I had the pleasure of meeting some of them when I visited last July for the ASEM Summit.

Other EU member states have stronger and deeper historical, economic and people to people links with Mongolia. Ireland’s EU membership has broadened our horizons and encourages us to strengthen our bilateral relationships with distant lands. That is increasingly important as we adjust to new political and commercial realities in the wake of the withdrawal of our neighbour, the United Kingdom, from the European Union.

Ireland has worked well with Mongolia at international level. Mongolia held the Chairmanship of the Asia-Europe Meeting, ASEM, in 2016 and hosted the 11th ASEM Summit in Ulaanbaatar in July 2016, which I attended on behalf of Ireland. There has been close co-operation within the framework of the Organisation for Security and Co-operation in Europe, OSCE, since Mongolia joined under Ireland’s chairmanship in 2012. Mongolia is currently a member of the Human Rights Council for the term 2016 to 2018, and we take a great interest in the work of that Council.

Undoubtedly, there is room for improvement in our bilateral trade. Despite a small increase in trade between 2015 and 2016, bilateral trade is still modest between Ireland and Mongolia in both volume and value. In 2016, total merchandise trade was valued at €8.2 million, mostly exports from Ireland in that regard. There is some potential for co-operation and trade in the equine industry and possibly in agriculture, as Mongolia looks to develop these sectors.

The Irish Government has provided some modest development assistance and humanitarian assistance to Mongolia in recent times, channelled through civil society organisations.

The Irish Government has also supported the deployment of eight Irish observers on election observation missions to Mongolia, three in 2013 and a further five in 2016.

This agreement offers us, together with our EU partners, an opportunity to get to know Mongolia a little better and to identify possible opportunities for co-operation across a wide range of sectors. It is also expected to benefit the people of Mongolia and the Mongolian economy.

It is intended to supersede the current legal framework of the 1993 agreement on trade and economic co-operation between the European Economic Community and Mongolia. We are among the last EU member states to ratify the agreement, and I hope that the committee will be happy to approve its terms.

The main objective of the agreement is to provide a framework for strengthening the bilateral relationship between the European Union and Mongolia. The agreement is based on a commitment to promoting respect for democratic principles and fundamental human rights. It will provide for a comprehensive, wide-ranging dialogue between the European Union and Mongolia, including co-operation in a wide range of areas such as political dialogue, trade and investment, energy, tourism, the environment, development, migration, energy, science and technology, as well as maritime and aviation transport, agriculture, health and civil society. The agreement also addresses issues in the area of illegal migration, money laundering, illicit drugs, organised crime and corruption.

It is important that Ireland makes the necessary arrangements to ratify the agreement as soon as possible, as it will not enter into force until the first day of the month following the date on which the last party has notified the other of the completion of the legal procedures necessary for this purpose. If Ireland is the last member state to ratify the agreement, this will be the final impediment to the agreement’s entry into force. That would be a great shame, as the agreement promises to strengthen EU-Mongolian relations in the years ahead.

As the PCA agreement is a mixed competence agreement, it must also be ratified by all EU member states as well as by the European Union. Ireland has signed but not yet ratified the agreement. It is one of only two member states, the other being Greece, that has not yet completed the necessary ratification procedures.

The agreement was signed on 13 April 2013. MEPs on the European Parliament’s Committee on Foreign Affairs consented to the PCA in early December 2016. It was subsequently endorsed during the plenary session of the European Parliament, which took place this year from 13 to 16 February 2017, on 15 February 2017.

I thank the committee again. I hope this motion will receive the approval of the committee and that Dáil Éireann will approve the terms of the agreement so that we can proceed to ratify it in the near future. I am happy to deal with any issues or observations of members.

Chairman

I thank the Minister. It is an agreement that is welcome. These types of agreements are important for smaller EU member states such as ours, particularly in terms of locations where Ireland does not have an embassy. I understand the European Parliament passed a resolution earlier this year calling for a full EU delegation to Mongolia. Has that been agreed at Commission level or is it likely to go ahead? Obviously, it would be of benefit to us when we do not have diplomatic representation in Mongolia.

Deputy Charles Flanagan

I think it has been agreed. The target is that this would be completed and on the ground by the end of this year or early next year. There are a number of issues to be resolved, but the intent is to move forward. That will take place within the next 12 months.

Chairman

I thank the Minister.

Deputy Darragh O'Brien

On behalf of the committee and my party, I want to express our deepest sympathy and condolences to the people of Manchester, and to the British Government, following the horrendous attack on Monday, and also on the attack in Jakarta, Indonesia.

I have two questions for the Minister. This debate is welcome, and I thank him for his presentation. First, I am interested to know the reason Ireland is the second last country in Europe to ratify the framework agreement? Is there a reason it remains to be ratified only by Ireland and Greece? I accept it might be a procedural issue.

Second, is the Minister aware if there are other EU third country framework proposals in the pipeline that are due to come before this committee?

Deputy Charles Flanagan

I acknowledge Deputy O'Brien's support and that of his party. I regret the fact that Ireland and Greece are somewhere behind in terms of the formal ratification. There are a number of reasons for that. It was not to do with a principle issue but the fact that we were particularly busy in recent years in terms of the composition of committees, elections and so on. That is why I hope we can agree the motion this morning. There was no issue of principle or legal or procedural obstacle. It was just that over the course of our business we were not in a position to bring matters to fruition in the manner in which we will do now.

On the second question, I do not have that information to hand. I would be happy to communicate it privately to the Deputy or to the Chairman.

Deputy Darragh O'Brien

I thank the Minister.

Deputy Jan O'Sullivan

Part of the procedure is that there could be a charge on the Exchequer. Will the Minister explain what that might mean?

The Minister mentioned humanitarian assistance through civil society organisations. Who are they? I am trying to determine the extent of our engagement to date in Mongolia.

The Minister mentioned trade opportunities. What does the Minister envisage will be those trade opportunities?

The Minister mentioned money laundering and illicit drugs. I must confess that Mongolia was not on my radar as a place where either of those activities took place; I may have missed something in that regard. I do not think we know very much about Mongolia.

Deputy Charles Flanagan

These would be standard agreements. It is not that any of these issues particularly refers to Mongolia or any issue of concern in terms of our relationship with Mongolia. In terms of this partnership co-operation, the essential aspects are that the European Union would work towards supporting the democratic and economic development of the country. In order to do so in a way that is meaningful, the most appropriate means are by way of a legally binding framework for co-operation. In Mongolia, there is a requirement to strengthen economic and sectoral co-operation across a wide range of policy fields.

While our trade and investment is small, that area includes, as Deputy O'Sullivan said, some sustainable development and justice issues which we are furthering. The agreement also looks at specific areas like the assistance we can give in the area of tourism potential in Mongolia. This is an area where there is a great deal of potential. In respect of our development engagement, I cite Ireland's relationship with a number of active NGOs, in particular Save the Children and World Vision, which are operating in Mongolia. There is also the Christina Nolan Foundation with which members will be familiar. The World Vision contribution is in excess of €200,000.

Once we have this legally binding framework, it will provide us with opportunity for further discussion. The committee might be in a position to be of assistance in our engagement with countries like Mongolia. For example, the members might consider forming a parliamentary friendship group and making contact on that basis. I am not familiar with the committee's travel plans, but there may be an opportunity at parliamentary level. My experience from my short visit was that the Government and Parliament of Mongolia are anxious to strengthen their ties with EU member states, with particular reference to Ireland, albeit in circumstances where our trade and economic relationship is pretty small.

Deputy Seán Crowe

I wish to be associated with the remarks on the deaths of young people and parents in Manchester. Our thoughts are with all the loved ones of those who died and were injured. As the Minister said, no Irish people were killed or injured, but there is a long connection between Manchester and Dublin, with people and families travelling back and forth. I am sure there are connections to some of the injured and perhaps the dead. I hope the bereaved and injured will find some solace and comfort in the outpouring of support from people across the world.

I have a couple of observations on the framework agreement. Sinn Féin supported it when it came to the European Parliament. Some concerns emerged from the review but overall we see it as very positive. It does not interfere with Mongolia's right to decide its own social and economic future, unlike other EU framework agreements. It also recognises Mongolia's right to formulate its own ties with countries, which is really positive. It is a positive step. There seemed to be a different approach to the agreement than there has tended to be with others. It talks about the legitimate right of Mongolia to look for co-operation on economic issues and to build political alliances with countries other than those in the EU. I see that as a different and an encouraging approach. It encourages regional integration into Chinese and Russian projects, the China belt, the Silk Road and Eurasian Economic Union. There is a recognition of Mongolia's location and importance in that part of the world. It talks about its constructive role in the region and its exceptional established democratic credentials and pledges stronger relations and support for Mongolia in its democratic transformation.

The agreement could become a positive reference. It talks about the remaining challenges in human rights and the rule of law, which I ask the Minister to comment on. It refers to engaging in a dialogue on bilateral and multilateral trade and trade related issues with a view to strengthening bilateral trade relations and advancing multilateral trade systems and compliance with WTO rules. It can serve as a basis for further negotiations in the EU-Mongolia free trade agreement. My concern about that is if it turns out like some other FTAs we have agreed. Even if Parliament is agreeable, we would not necessarily agree. I would have difficulties with that. There are also problematic parts on trade and economic resolution relations. The accompanying resolution agreement welcomes the inclusion of Mongolia in the GSP+ scheme and encourages the EU and Mongolia to intensify their trade and investment relations. There is a positive point in that it stresses that intensification should be in line with international conventions on labour standards, good governance and human rights and environmental standards. I see that as a positive step and a positive message. Lastly, it includes reference to climate change and environmental challenges, namely, tackling extractive industries and so on. There are a great many positives in it. I congratulate whoever the negotiators were. There is a growing realisation that these agreements can be positive not only for the EU but for the country involved. The fact that labour standards, good governance and human rights are included is a positive step.

Deputy Charles Flanagan

I thank the Deputy for his support. He makes two points that warrant response. On the matter of the form of framework agreement which members will have, it is a rather standard agreement with a wide range of references and issues from human rights to trade to counter-terrorism. I do not see any aspect which is specifically designed for the EU's relationship with Mongolia. Rather, it is indicative of the fact that Mongolia is anxious, as is the EU, to co-operate in a formal partnership along the lines other countries have engaged with the European Union. It is a form of common standard.

On human rights, I remarked earlier that Mongolia is currently a member of the UN Human Rights Council for the 2016-2018 term. Since 1992 and the introduction of a democratic constitution in Mongolia, there has been a remarkable success in that country in the transition to a market economy and democracy, as borne out in United Nations assessments. I acknowledge the significant progress on human rights in Mongolia. It has a national human rights commission which has been judged to be fully compliant with the Paris principles on national human rights institutions. In 2015, the Mongolian Parliament voted in favour of a new criminal code which abolished the death penalty for all crimes and which took effect from September 2016. The first ever EU-Mongolia human rights dialogue took place in March 2017. There has been and continues to be much progress in that regard.

Deputy Tony McLoughlin

The Minister mentioned trade and investment, which may be minimal. What type of trade and investment activity do we have with Mongolia?

Deputy Charles Flanagan

Trade between Ireland and Mongolia is modest in value and, indeed, in volume. In 2015, total merchandise trade was valued at €8.2 million. Of that, exports from Ireland were at €7.4 million while imports were roughly 10% of that figure. There is potential, however.

While the figures are modest and the engagement is little more than minimal in terms of our own international footprint, there is potential in the equine industry and also in agriculture as Mongolia looks to develop further. I am also very conscious of Ireland's engagement in the equine and bloodstock industry and associated trade opportunities in feed and so forth. There certainly are opportunities but I must acknowledge that the current practice is low.

Chairman

Deputy Barrett could share his expertise on the equine and bloodstock industries any day.

Deputy Seán Barrett

Yes, but only for a fee.

Chairman

That will have to be negotiated. The Minister made reference to the human rights dialogue. I note that in the February 2017 resolution of the European Parliament regarding the agreement, among the many issues outlined was the absolute need to eliminate discrimination against women and to eradicate all forms of child labour. Huge concern was also expressed with regard to human trafficking. These are some of the many issues that must continue to be monitored if we are to make progress and ensure human rights do not continue to be abused.

Deputy Charles Flanagan

I agree and would point to the UN's universal periodic review of Mongolia which contained 164 recommendations, 150 of which have been accepted. Those recommendations refer to a wide range of pursuits, including those just mentioned by the Chairman.

Chairman

I thank the Minister for engaging so constructively with the committee on this important subject. The select committee has now completed its consideration of the motion and in accordance with the Order of 9 May 2017 and Standing Order 90, a message to that effect will now be sent to the Clerk of the Dáil.