David O’Sullivan, Irishman and EU Ambassador to the United States addressed a meeting in Dublin this week attended by ICOS on the importance of transatlantic trade and investment partnership (TTIP).

The negotiations between the EU and the United States on TTIP started in June 2013 at the G8 meeting in Lough Erne. O’Sullivan noted that a typical trade negotiation would be expected to last between 5 to 6 years. With TTIP in its second year and 10 rounds completed to-date, the negotiations are not necessarily reaching the end game according to O’Sullivan. However, he stated that the intention of both sides is still to conclude a deal before the end of the Obama administration or at least early into the next administration’s term in office.

TTIP is part of a much broader EU strategy to open markets around the world according to O’Sullivan, with free trade agreements concluded with Canada, Singapore and Vietnam and negotiations underway with a host of other nations including Thailand, Malaysia and India.

O’Sullivan believes that TTIP will be a powerful shot in the arm for Ireland. He noted that in 2013, 20% of all Irish exports went to the US, and the value of food and drink exports alone was over €500 million.

According to the EU’s lead negotiator on TTIP, the opening up of agricultural markets will be a two-way street. The US is interested in selling more of its agricultural commodities, such as maize and soy. While, EU exports to the US are mostly higher value food products including dairy. For example, Kerrygold is the leading imported butter brand, and Irish co-ops are making major strides with cheese and other dairy products at the premium end of the market. As such, the removal of trade barriers are of considerable importance when you consider that some dairy products are subject to tariffs of 100%.

O’Sullivan was unequivocal in relation to hormone fed beef. He stated that there is no question of the EU reducing its regulatory standards in this regard. Referring to beef, he also stated that the EU does not envisage full liberalisation of sensitive products and this has been made clear to the US from the beginning of negotiations.

Last but not least, TTIP will be subject to a rigorous approval process once negotiations eventually finish between the EU and the US. TTIP will require the unanimous approval by the EU’s 28 Member States at Council level, the approval of the European Parliament and ratification by the Parliaments of each EU Member State.

From day one, ICOS has closely monitored the progression of TTIP through our Brussels based representative. Moreover, ICOS is an official stakeholder recognised in the trade rounds, and we attend the various civil society meetings on a regular basis, presenting the views of our co-operative membership on all aspects of TTIP both positive and negative.

By Eamonn Farrell, Agri & Food Policy Executive