Nice Treaty Positive for Trade Relations - Kitt Provision that decisions must have the support of a majority of Member States a valuable protection for smaller States. - Tom Kitt. Balance struck on how we approach global trade - Trade Minister

Tom Kitt, T.D., Minister for Trade has assured the public that the Nice Treaty will impact positively on our conduct of International Trade Policy. The Minister was speaking at a public debate organised by Comhlamh today (Thursday 24th May, 2001) in Liberty Hall, Dublin.

Minister Kitt said, "that there has been some misleading allegations that the Treaty of Nice is fundamentally changing the manner in which trade policy is conducted by the EU and the individual Member States, including Ireland." He reassured that, "there is no fundamental change to the manner in which trade policy will be pursued."

The Minister stressed, "the EU, with Ireland’s full participation, has a very well developed and successful trade policy. This policy is the promotion of a trade liberalisation agenda but one that balances the trading, social and other concerns of our citizens with those concerns of our trading partners, particularly our least developed and developing country partners. This will not change following the Treaty of Nice. I firmly believe that the orderly development of trade within countries is the surest way of improving prosperity and social development. The Irish experience is a classic example of how open trade assisted in our economic and social development. I am not suggesting that the Irish model can be automatically transferred for universal use but I am saying that it confirms that open trade can be a positive and real contributor to prosperity and development.

"Trade opportunities in foreign markets are balanced by EU schemes to assist partner countries such as the Cotonou Agreement (i.e. the new Lome Convention), the Generalised System of Preferences and technical assistance programmes. Recently the EU’s "Everything But Arms" initiative for least developed countries was agreed by Ministers and set a model for other countries to emulate. "It is interesting to recall that this initiative went through the Council of Ministers under existing Treaty provisions on the basis of a qualified majority. Had unanimity been applicable, I doubt very much if the proposal would ever have been agreed," said Minister Kitt.

"I can also assure you that in a very tight voting scenario, the voting intentions of some of the smaller Member States, including Ireland, became a major catalyst in driving towards a positive outcome for the proposal", he added.

Commenting on the launch of a New Round of Trade Negotiations at the WTO Ministerial meeting in Doha next November Minister Kitt said, "this Round must address the legitimate concerns of all WTO Members, particularly least developed and developing countries. In a sense, it must be a Development Round and we must ensure that developing countries can benefit from a New Round. In this regard, the EU has recognised this need and has been a proponent for a Comprehensive Agenda which would reflect the interests of all the WTO membership and which would allow all members to gain from a successful outcome to the negotiations. The special interests of developing countries such as implementation, technical assistance and special and differential treatment can be addressed constructively within such a comprehensive round."

Minister Kitt stressed that, "the Treaty of Nice is, in fact, primarily focused on the internal restructuring of the EU to facilitate the entry of new members into the Union. The Candidate countries see the many benefits in joining the Union. A larger internal market will present opportunities and challenges but will over time lead to economic growth, political stability and prosperity for the citizens of these new members. Our own experience since joining the EEC is confirmation that the aspirations of the applicant countries are well conceived and will be fulfilled.

While the larger States have had their voting weight increased, Ireland’s voting weight is only marginally affected and remains the same as Finland and Denmark. In this context, it is important to note, in any event, that most decisions in the Union are in fact taken by consensus, and in practice issues rarely divide on a big State/small State basis."

In addition, an important safeguard agreed at Nice is that decisions must have the support of a majority of Member States. This is a valuable protection for smaller States."

Minister Kitt concluded, "An objective assessment of the relatively limited changes proposed by the Treaty of Nice must be that Ireland has nothing to fear, and much to gain, from equipping the Union to face the challenges ahead. We in Ireland have demonstrated, over the past three decades, that we are fully capable of adapting, and taking advantage of the benefits and opportunities which full participation in the Union has offered us. The Nice Treaty will be good for Ireland, good for the EU and, most importantly, good for the Candidate Countries of Central and Eastern Europe as they seek to advance their economies and peoples by joining our successful European Union".