Monthly Archives: June 2012

Trading Our Way Out Of It?

Changing and reforming Government Departments is a common political tool which is somewhat understandable with new Governments wanting to illustrate new priorities. The Department of Foreign Affairs was not to be exempt from these changes by this Government despite tradition. Trade is the new mantra and this was to be a new priority in our foreign policy. Again it is probably worth repeating it is hard to find an official consolidated list of what these priorities are rather it seems necessary to piece them together.

The programme for Government and the briefing material produced for the Minister by officials is replete with the language of rebuilding Ireland and increasing trade and investment. These are always part of foreign policy and naturally important for Ireland right now. It is more the precise method and consequences that seem in need of analysis. Trade and trade promotion is a key part of all Government policies. In fairness in Ireland responsibility for this area has moved around quite a bit in the musical chairs of Government. A certain Enda Kenny was Minister for Tourism and Trade in the 1990s. We then had for a considerable time the Department of Enterprise Trade and Employment until the most recent changes.

The current Government has transferred the trade promotion section from the (now) Department of Jobs, Enterprise and Innovation (formerly ET&E) to Foreign Affairs and changed the title to the Department of Foreign Affairs and Trade. This change was consistent with the programme for Government and manifesto commitments. However no sooner was this done than the trade function was effectively delegated to a Minister of State who also holds responsibility for our Aid programme. The same office previously held responsibility for Human Rights which now seems to have disappeared!

It is the latter manoeuvres that could well be a cause for concern. Surely if trade and salvaging the Irish reputation abroad is so crucial it is a matter for the senior minister in the Department? Bear in mind that the Department of Foreign Affairs has also transferred a lot of its functions in the area of EU affairs to the Department of An Taoiseach. Increasingly one may wonder how much functionality remains in this Department which has long being accepted politically to be the “third most senior job” in Government. Consider that over 1/3 of all staff in Ireland in the Department work in giving out passports (and the Programme for Government states that they may move to the Department of Justice) and a 1/6 on the very specific task of Irish Aid and very soon we see a Department looking a little hollowed out.

Of course we also have learnt that responsibility for the WTO, the major trade agencies such as the IDA and Enterprise Ireland and other areas remains with the Department of Jobs, Enterprise and Innovation. The role of Foreign Affairs seems to be to hold meetings of a variety of Councils and fora which might drum up some business for Ireland Inc (currently in receivership). This all seems a cumbersome method to say the least. However this is before we consider the potential impact on the more traditional foreign policy areas.

As mentioned the previous responsibility for Human Rights which once existed in the Overseas Development Minister of State’s portfolio seems to have disappeared. This may just be a change of title. However we don’t have to think too hard to imagine some of the possible conflicts that could arise. Even a cursory glance at the Department’s website shows Joe Costello currently heading a delegation to Turkey, here is a country where we should surely be paying attention to Human Rights and Trade, a difficult act to balance. The press release makes no mention of Human Rights issues.

Despite the WTO process being in somewhat of a heap it still seems reasonable to try and examine the links between the World Trade system and our commitment to Overseas Development. Ireland has had the distinction of having WTO delegations lead by our Agriculture Ministers. Not all Countries do it this way; Denmark for gives a much higher priority to development and gives NGOs involved in these issues direct access to the delegations. There simply isn’t time here to go into the links between the WTO, agriculture, development and Ireland but all accept it is there. Similarly Ireland supports enhanced tax collection in developing countries through Irish Aid but at the same time through the Department of Jobs, Innovation and Enterprise we support a level of liberalisation in international tax treaties that makes life very difficult for developing countries.

Nobody would ask Ireland to give up its views in these areas but if we are to have coherence between development and trade these are some of the places it is needed and our Foreign Ministry should be able to play a role.