A small, open economy such as Ireland's has a lot to gain from a world trade deal, European Commission José Manuel Barroso has said.
But he admitted that agreement would require the farming sector to focus more on the market and on high quality food production.
In an address to the National Forum on Europe in Dublin Castle today, Mr Barroso said acknowledged that there were concerns among Irish farmers about the direction of the World Trade Organisation talks in Doha.
But he insisted that Ireland was “already well positioned in the quality end of the beef market”.
Thousands of farmers held a demonstration in Dublin today to coincide with Mr Barroso’s address to the forum and to protest at proposals currently being discussed at the talks which they claim would destroy Irish farming.
Mr Barroso said a breakthrough in the Doha negotiations would give a much-needed boost to global economic confidence.
“A balanced deal will bring huge benefits to Europe in the area of goods and services and ensure that we deliver on our commitment to giving the developing countries a greater stake in the international trading system.
On the upcoming Lisbon Treaty referendum, Mr Barroso said: “The eyes of Europe, if not the world, will be on Ireland in the run up to June 12th."
He insisted the treaty, if ratified, would make the EU more efficient and effective.
“The treaty will greatly simplify the voice and even the face of the EU for the rest of the world.”
He also said there is nothing in the new treaty that will affect Ireland’s tradition of military neutrality.
“Here too unanimity will continue to be the rule and each member state retains a veto over proposals or crisis management missions,” he said.
Minister for Foreign Affairs Dermot Ahern also told the Forum the Treaty would secure Irish neutrality and tax sovereignty.
“It recognises our common interests while at the same time respecting vital individual national interests, such as taxation and defence in our case, where decisions can only be taken by unanimity,” he said.
Mr Ahern said the two central principles of the Union were solidarity and equality.
“By signing the Reform Treaty in Lisbon all 27 member states reaffirmed their faith in these principles.
“The practical effect of these two principles is visible in today’s Europe. It is the most peaceful and prosperous region on earth,” he added.