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Paul Murphy: CETA ratification hands power to foreign multinationals

Paul Murphy: CETA ratification hands power to foreign multinationals

Paul Murphy spoke in the Dáil against full ratification of CETA, arguing the deal would give private investor courts extreme powers over the Irish state. He warned that multinationals could use CETA's investor court system to sue Ireland for loss of future earnings and that the Supreme Court had previously raised constitutional concerns in 2022.

Main objections


The speaker argued that the Supreme Court effectively 'buried' the full ratification in 2022 because CETA grants sweeping powers to private investor courts that lack democratic oversight and cannot be overruled by Irish judges.

Legal and financial risks


Paul Murphy warned that if CETA is fully ratified, big multinationals could sue the Irish state for loss of future earnings - a practice known in the speech as indirect expropriation. He said companies could simply incorporate a subsidiary in Canada to access the investor court system.

Environmental and data policy impacts


The speech raised the prospect that restrictions on data centres introduced for environmental reasons or to protect water and energy could trigger lawsuits. Paul Murphy specifically named Amazon and Google as companies that could sue Ireland for billions of euros under CETA's investor mechanisms.

Sovereignty and withdrawal concerns


The speaker emphasised that, according to his account, Ireland would have no unilateral way to withdraw once CETA is fully implemented and that only the EU as a whole could do so. He questioned why the government would tie the hands of future governments and subordinate national decision-making to foreign multinationals.

Responses in the debate


Other contributors in the debate noted that CETA is currently in provisional operation and cited strong growth in trade with Canada, including a claim of roughly 460% growth in exports to Canada. It was also stated that the Arbitration Act was approved by Cabinet and would go forward for legislation, and that the Occupied Territories Bill was approved by Cabinet and would proceed to the Dáil and the Oireachtas Committee.

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Transcript
You and the government are using Trump's tariffs threats as an excuse, effectively, to exhume the full ratification of CETA back from the dead. There are very good reasons that the Supreme Court buried it back in 2022. The Supreme Court ruled that the ratification of CETA will be unconstitutional because it gives extreme powers to shadowy private investor courts which have no democratic oversight and cannot be overruled by Irish judges. If CETA passes and you have full ratification as you want, big multinationals will be able to sue the Irish state for loss of future earnings if it does anything that impinges on their profits. It is known as indirect expropriation, regardless of the social or environmental cost. All they have to do is to incorporate a subsidiary in Canada and then they can use CETA's investor court system. If restrictions on data centres are brought in, which you obviously wouldn't agree with, for environmental reasons or to safeguard our water and energy, Amazon or Google could sue us for billions of euros. There is no way for Ireland to withdraw once it is fully implemented, only the EU as a whole. So why tie the hands of future governments and subordinate us to foreign multinationals? Just in terms of the CETA trade deal, which also a number of deputies have raised, I would support what Deputy Malcolm Byrne has articulated. I would be very much opposed to what Deputy Murphy has articulated. CETA is in provisional operation as we speak. And the figures are very interesting in terms of the growth in trade between Ireland and Canada, and particularly Irish exports to Canada. I think it's gone up, and I can check this, up something like 460% in terms of exports over that period of time. That's phenomenal. And also then you have a significant multinational presence of Canadian companies in Ireland, and then you have Irish companies based in Canada. And, you know, trade is the bread and butter of the Irish economy. We only put bread and butter on people's tables if we have a sufficiency of trade. We produce and export nearly 90%, sorry, we export 90% of what we produce. So I don't know how Deputy Paul Murphy believes we can protect the working class and workers if we're to turn our back on trade deals, because people will lose jobs. If we turn our back on trade deals of this kind, that the European Union negotiates on behalf of the European Member States, which have a significant impact on a small open economy like Ireland, which needs access to markets all over the world. It's that simple. And the Supreme Court didn't bury it. The Supreme Court actually indicated the remedy, the avenue to facilitating the legislation for the seated trade deal, which Deputy Bacic has referenced, the Arbitration Act, sorry, apology in respect of that. And yes, we did. That was approved today by Cabinet, and that will go for legislation. The Occupied Territories Bill was approved today as well. And as we brought it to Cabinet, it will come into the Dáil and go to the Oireachtas Committee. Thank you.