Trade is vital for Ireland. While we only have 0.06% of the world’s population, Irish export trade accounts for a disproportionately large 0.87% of the world’s trade in goods and 2.66% of the world’s trade in services. Export trade makes up a massive 89% of GDP. Joining the European Union gave Ireland unlimited access to the world’s most important market for trade in services and second most important market for trade in goods. The Lisbon Treaty strengthens this hugely important connection.
The Gateway to Europe
In business, perceptions matter: a recent survey showed that a Yes to Lisbon is important to 89% of Irish exporters.(*1) No wonder: 63.4% of our export trade is with the EU. 198,000 Irish jobs are directly related to EU trade and another 200,000 Irish jobs are indirectly related to EU trade. Most of those jobs are created by foreign companies, investing in Ireland because we are an English-speaking gateway to the EU market. US firms have invested $87 billion in Ireland. Intel, which employs over 5,500 people in Ireland, chose to invest here because of Ireland’s “full embrace of its connection to the EU”. The American Chamber of Commerce in Ireland strongly supports the Lisbon Treaty. A Yes to Lisbon sends a signal to Intel, and to other major employers, that Ireland is a central player in Europe and the right place to invest. These figures show clearly that trade is important to Ireland- trade that has grown and developed through the EU. Trade will continue without Lisbon- but ratification is another step forward in a mutually beneficial relationship.
A more dynamic, responsive Europe under the Lisbon Treaty will help ensure the recovery of our banking sector. Perhaps more importantly, it will ensure that the EU is equipped to act to stop another crisis occurring. This is vital for small countries like Ireland that were struck particularly hard by the crisis. Foreign investment is more important for us than for almost any other country: it makes up a massive 81.2% of our GDP, compared to a global average of only 24.8%. Ratifying Lisbon will help to ensure this investment continues into the future, by restoring the confidence of businesses that were attracted to Ireland for its access to Europe
Ireland’s Clout in External Trade Policy
36.6% of our export trade is with countries outside the EU, 17.8% of that with the US. Lisbon will help us make the most of these valuable trading relationships. Currently, the direction of EU external trade policy is set solely by officials in the European Commission. The Lisbon Treaty improves this situation. Under Lisbon, Irish MEPs and Irish government Ministers will have significant influence over the direction of trade policy. While the Commission will still be responsible for negotiating trade agreements, officials will have to report regularly to our elected representatives. Further, small states are given extra power in the council and there are provisions to make sure a small number of large states can’t push an agenda.(*2) When agreements on services or foreign direct investment touch on sensitive issues like financial regulation and monetary policy, Ireland will have a complete veto.(*3) We also have a legal guarantee that we retain complete control over tax policy.
Failure to ratify Lisbon can only be bad for Ireland’s economic situation, but the more important fact is that it represents a missed opportunity. Exports and trade will be the base for Irish growth and renewal. Lisbon promotes this agenda. Through the EU we can regain our economic strength and start to build the trade links that will pull us out of the economic crisis.
On October 2nd, Ireland has an opportunity: let’s take it.
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(*1) - In a survey of 500 employers, some of whom were not exporters.
(*2) - Articles 188C and 188N of the Treaty on the Functioning of the European Union.
(*3) - Article 105 of the Treaty on the Functioning of the European Union.
