HEAD2HEAD: YES John Dunnesays that Ireland's interest in free trade far outweighs the importance of agriculture to our economy
A liberal, multilateral global trading system fosters economic growth, creates wealth and gives consumers greater choice. It improves lives in the developing and developed worlds.
The current Doha round of negotiations on the rules of international trade are protracted and difficult, but they remain of critical importance to Ireland. Some Doha critics have claimed that Ireland will not gain anything from the World Trade Organisation (WTO) negotiations and that it will, in fact, destroy Ireland's food industry - but this analysis is unsustainable.
The slogan that "no deal is better than a bad deal" is an effective soundbite, but it misses (perhaps intentionally) the central question of what would represent a good deal for Ireland. The answer is simple - we need a global trade regime that will allow our economy to continue to grow and prosper. In this context, it is hard to see how Ireland might benefit from a failure to reach agreement.
As a small, highly globalised and open economy reliant on trade and foreign direct investment for growth and wealth creation, Ireland is dependent on access to international markets. A recent Forfás report concluded that "much of the benefit of the Doha round for Ireland is in the liberalisation of the trade in services", and this must be acknowledged in the context of formulating our position on the trade talks.
Guaranteed access to markets beyond the EU is crucial if we are to protect ourselves against global economic cycles and grow our dynamic economy via sustainable development underpinned by services and international trade. While agri-business is important to the economy, it is clear Ireland is moving increasingly into international trade and services as distinct from agriculture or manufacturing.
Agricultural issues have been an undue stumbling block to the completion of these trade negotiations. Squabbling between rich countries - such as Ireland - and poorer countries over eliminating barriers to agricultural trade have resulted in a stalemate in the current negotiations. Last July, for example, talks collapsed due to US unwillingness to match the EU's agricultural reforms - but failure to reach a final agreement could pose significant danger for Ireland.
All eight previous rounds of multilateral trade negotiations in the decades since the second World War concluded successfully. Should the Doha round become the first to fail, advocates of protectionism would have the opportunity to erect new barriers to Ireland's growing exports of goods and services. We could then find ourselves in a situation where a complicated web of bilateral agreements exist, which are not a substitute for non-discriminatory global rules.
Nonetheless, the ambitious Doha round can still bear fruit. If the US revises its stance on agricultural subsidies, the deadlock may be broken - but the key for Ireland in that scenario is to drive towards securing a fair, sustainable deal in keeping with projected trends for the future of our economy.
Research and analysis has shown that the kind of global trade regime that will benefit Ireland most is not one built on agriculture, but one based on international services. All three main trading blocs must make concessions, however, if the Doha round is to succeed. The group of G-20 - big emerging economies including Brazil, India and China - must concede on tariffs on industrial goods imported into their countries. Similarly, the US and Europe must give ground on subsidies for agriculture and tariffs on agricultural imports.
Europe and the G20 have moved significantly over the past year, but the US has remained intransigent. The biggest losers in this scenario will not be European agriculture but rather developing countries in the Third World.
Business strongly supports the Doha trade discussions in the belief that the creation of substantial new business opportunities in a multilateral environment will translate into higher living standards in Ireland and around the world.
Ireland's transformation from a failed regional economy of the UK to a thriving and globally trading region of the EU is a direct result of increased levels of free trade. Consequently, capitalising on the Doha round is crucial for Ireland's progress and determining Ireland's position on the Doha round by way of an industrial, as opposed to an agricultural, agenda is clearly the best way to ensure the sustained prosperity of the Irish economy.
• John Dunneis chief executive of Chambers Ireland and chairman of ICC Ireland, the national committee of the International Chambers of Commerce