Micheál Martin (Cork South-Central, Fianna Fail) | Oireachtas source

Níl aon amhras ach gurb é seo an t-ábhar is tábhachtaí a bheidh os comhair na Dála seo agus os comhair na tíre sna blianta atá romhainn. Bunathrú atá faoi chaibidil ag údaráis na Stát Aontaithe agus Uachtarán na Stát Aontaithe maidir le tariffs agus cúrsaí trádala. Without question this is a fundamental shift in US policy. Tariffs are bad. They are bad for the world. They will create instability, uncertainty and a lack of predictability in the world economy. That will mean a pause in investment. Whatever about existing investments, decision-makers are pausing their investment decisions pending this settling down. That will have a dampening effect on economic growth, not just globally but also across Europe and in Ireland. It is clear from what we understand so far that we are looking at a universal applicability of tariffs in terms of countries and goods. We have a number of sectors. The US Administration is going to focus on five sectors, including semiconductors, wood, pharma and automotive, which is having a big impact already in some EU countries. The key issue, however, is that Europe does not want tariffs and wants negotiation. Europe will take a strategic approach in its response, and that is as it should be. We are part of the European Union and we will input into that response as to what is the most effective, strategic way to mitigate the impact of tariffs on Ireland and Europe. Tariffs will increase inflation, increase the cost of medication and increase the cost of groceries in America in particular and elsewhere.

I reject the Deputy's criticisms in terms of Ireland. Ireland has a broad base that comprises indigenous and multinational investment here and abroad. Irish companies are all over the world, and there is a connection. The FDI that came into Ireland spawned a lot of Irish-owned companies. These are now big strong companies that developed on the back of supply chains to the multinationals, particularly in the areas of project management and instrumentation. Take a company like Intel or some of the pharmaceutical companies. They are constructing plants all over the world. Very often, Irish companies will be found in the supply chains to those companies. It is far too simplistic to draw a distinction between the FDI sector and Ireland's SME sector. We need to diversify markets. We need to sign the Comprehensive Economic and Trade Agreement, CETA. I think the Labour Party was opposed to CETA.

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