Edward Timmins (Wicklow, Fine Gael) | Oireachtas source

We should all know the huge benefit international trade has been for Ireland. On a financial basis alone, of the €97 billion we take in in taxes, more than €50 billion is attributable to our multinationals by way of corporation tax, VAT and PAYE. This supports all the services that the State supplies, including health, social welfare and education. I often wonder whether this fact is lost on many people.

I wish to raise three issues relating to international trade. I will first discuss lessons from history on tariffs, then what Ireland should do about tariffs and, finally, our future international trade strategy.

History warns us against tariffs. They are a lose-lose approach to international trade. In the 1930s, the USA introduced the Smoot-Hawley tariffs. These resulted in an average tariff of 60% on imports. The rest of the world retaliated and countries imposed their own tariffs. This led to deep division. The tariffs may not have caused the Great Depression a couple of years later but they certainly contributed to it. It also led to anti-Americanism at the time, for example in Cuba, whose economy collapsed, the legacy of which remains to this day. Boycotting and anti-Americanism could be repeated today. In high-income countries, the average tariff on manufactured goods is now just 1.8%. It stands at 5.5% in middle-income countries and 14.2% in low-income countries, so there is a clear correlation between wealth and low tariffs.

As part of the EU, Ireland must do all of its negotiation with the EU. We must immediately engage with the EU regarding the huge threat US tariffs pose to the Irish economy. This is critical because we are far more exposed than any other country. Our exports to the US are a large percentage of our GDP. Our pharmaceutical, medical devices and food and beverage industries must not be sacrificed in the tariff negotiations to the benefit of other EU industries such as the automobile industry.

I was pleased to hear the Tánaiste announce yesterday that he would begin a series of calls with his European counterparts and would meet the trade forum on Friday. Over the past ten years, Ireland has developed its exports to the US markets very successfully. We need to protect that.

Regarding Ireland's strategy, given the fast-changing conditions in world trade, Ireland needs to react to them. For example, we should put emphasis on near sourcing. This means increasing trade with our nearest neighbours, namely, the UK and other European countries. Unlike an increasing number of countries, these are our reliable partners. This policy also supports a lower carbon footprint in our international trade.

Enterprise Ireland recently published its five-year strategy. I welcome this and I like that it has put specific targets in place. It aims to increase client-company export sales to €50 billion by the end of 2029, with a target to grow job numbers to 275,000. The strategy includes many other targets. Similarly, the IDA recently launched a very ambitious five-year strategy that contains high investment targets for our multinationals.

To support this existing trade and grow future trade, we need to invest in infrastructure. Such investment is money that gives a return. It is not just about improving the quality of our lives. It is about securing our future. As anyone in business knows, if you do not invest, you will fall behind and stagnate.

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