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7.1 The Whitaker Report: Context and Content 7.1 The Whitaker Report: Context and Content
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7.2 European Trade Liberalization: The Inner Six and the Outer Seven 7.2 European Trade Liberalization: The Inner Six and the Outer Seven
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7.3 Policy Developments 7.3 Policy Developments
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Committee on Industrial Organisation Committee on Industrial Organisation
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Education Education
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Industrial Relations and Macroeconomic Policy Industrial Relations and Macroeconomic Policy
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Anglo-Irish Free Trade Area Agreement Anglo-Irish Free Trade Area Agreement
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The IDA, ‘New Industry’, and Regional Development The IDA, ‘New Industry’, and Regional Development
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7.4 Sectoral and Firm-Level Developments 7.4 Sectoral and Firm-Level Developments
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7.5 Erosion of the Sectarian Divide in Irish Business Life 7.5 Erosion of the Sectarian Divide in Irish Business Life
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7 Trade Liberalization and the Road to Europe
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Published:September 2023
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Abstract
T. K. Whitaker, Secretary of the Department of Finance and lead author of the 1958 report which is generally credited with triggering the dismantling of protectionism, underestimated the difficulties of the adjustment required. It would in any case be another five years before tariff barriers would begin to be dismantled. These steps were taken as part of the campaign to gain entry to the European Economic Community, which could not have been envisaged at the time of the Whitaker Report. De Gaulle’s veto of the British application gave Ireland a further ten years to prepare. Education was revamped, new export-oriented foreign industry expanded, a Free Trade Area Agreement (AIFTA) was signed with the United Kingdom, the Exchequer’s dependence on trade taxes was reduced, and restructuring of protectionist-era industry began. This chapter provides details of the major restructurings and mergers and acquisitions of the period. Much of Whitaker’s advice however, particularly on macroeconomic policy and cost competitiveness, was ignored. AIFTA was associated with far more industrial redundancies than had been anticipated. By 1972, export-oriented foreign firms accounted for almost 20 per cent of manufacturing employment, with the United States the single most significant source of inward investment. Responsibility for the contested issue of regional industrial dispersal was ultimately devolved to the Industrial Development Authority. The competitive pressures associated with trade liberalization contributed to the erosion of enduring sectarian divisions in the workplace and in Irish business life.
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