Peter Burke (Longford-Westmeath, Fine Gael) | Oireachtas source

I thank the Deputies for their engagement this afternoon. It is abundantly clear from today's debates that we are living through precarious times, with unprecedented threats to the international trading environment and resulting impacts on relations with trading partners, on the Irish economy and of course on Irish businesses. Deputies have raised a number of recurring themes throughout the interventions today and these are questions about the possibility of a global recession, concerns for the future of the multilateral trading system, fears about sectoral vulnerabilities and legitimate anxiety about what these developments might mean for jobs, investment and growth.

There is no doubt that the introduction of tariffs by the US Administration on imports from the EU presents a significant economic challenge for Ireland. It is because of these threats that we must work to protect the gains we have made as a country firmly embedded in the rules-based multilateral trading system. The Minister, Deputy Donohoe, highlighted this in his opening remarks. We remain committed to the principles of free and open trade by which we have underpinned our economic success. Open trade brings undoubted economic opportunities, creates well-paid jobs and fosters innovation. It builds economic resilience. Today we discussed different ways to respond to the threats we are facing. It is the Government's firm belief that any response from the EU to the US tariffs should be fair and proportionate and should carefully consider impacts on Ireland.

This afternoon the European Commission will seek agreement of EU member states to impose countermeasures related to US steel and aluminium tariffs. We understand that spirit and dairy products have been removed from the list of EU countermeasures. This is welcome. The Government had conveyed our sensitivities in this regard to the European Commission. An escalation in trade tensions would be to the detriment of both the EU and US economies. The EU remains dedicated to fostering a stable, balanced and predictable economic partnership with the US and I believe this will be evident in its response. The EU-US trade and investment relationship is the biggest in the world. More than €4.2 billion of goods and services are traded between the EU and the US daily. This deeply integrated relationship supports millions of jobs on both sides of the Atlantic and it is crucial to strengthen this partnership, not disrupt it with tariffs that risk diverting trade, increasing inflation and causing significant economic harm. Increased protectionism is not beneficial for citizens or businesses.

The Government appreciates that this is a very worrying time for many businesses, particularly those with goods at sea, with the ultimate impact of the US decision to impose tariffs on imports from the EU remaining unclear. However, we have received an update with regard to the grace period for shipments. A US Customs and Border Protection notification has advised me that there is a 51-day grace period for cargo loaded onto vessels or planes and in transit to the US before 12 o'clock on Saturday, 5 April.

These cargos need to arrive by 12 a.m. on 27 May to avoid 20% duty.

The Government is working along two main streams in terms of the response to support firms amid these challenges. First, we are working to put in place a suite of immediate supports to advise firms. This will be followed by an action plan on competitiveness and productivity. I have instructed my officials that I want this plan to be finalised and published as soon as is practicable.

I emphasise that Ireland remains an attractive location for firms internationally to locate and do business in. IDA Ireland continues to support existing clients here while also attracting new inward investment, emphasising our talent base and strong institutions, which create significant investment here. Last week, I was in Datavant in Galway. This company has selected Galway as the location for its global development centre, bringing with it 125 high-quality jobs. Continued investment like this demonstrates that Ireland remains an attractive location for businesses.

My Department is working with our dedicated agencies to support Irish businesses. Enterprise Ireland has established a bespoke team that is engaging with SMEs, supporting businesses around tariffs and mitigation measures as well as offering advice and support on diversification measures. One-to-one meetings have been held with over 300 companies exporting to the US, with further meetings planned. We continue to urge all businesses exporting to the US to engage directly with Enterprise Ireland.

Market diversification remains a key priority, as it has been for decades. It has seen significant success. Enterprise Ireland has 42 overseas offices, with specialist staff in place to grow businesses and explore new opportunities. A total of 190 overseas market advisers are employed by the Government through Enterprise Ireland, of which 156 are outside the US.

The Government does not underestimate the challenge of tariffs with regard to a significant export market like the US. However, there remain significant opportunities for Irish firms in other overseas markets. Enterprise Ireland is actively assisting firms with diversification efforts. It has set up a dedicated unit to engage with and advise Irish SMEs involved in trading with the US, with over 300 one-to-one meetings held in the past fortnight alone and further webinars scheduled. We also have dedicated schemes and grants, including a strategic consultancy grant for expert advice. A market discovery fund is already open and will be topped up when demand is met. I will also proactively engage with businesses to make them aware of these supports and to ensure they are accessed at scale. An expansive trade mission programme plan is in place. The ever-evolving situation will be closely monitored. The Government will not be found wanting when it comes to resourcing and supporting Irish SMEs, which are the backbone of our economy.

Alongside these measures, and given the rapidly changing international economic environment, I propose to accelerate the timeline to agree a new action plan on competitiveness and productivity. The action plan will be finalised soon and is supported by formal consultations with Ministers and stakeholder engagement led by the Department of Enterprise, Tourism and Employment and underpinned by research and analysis.

I am determined to drive this process forward and ensure we have a comprehensive plan that pulls together supports from across government. There are a number of areas where we can take action and I want to see real movement on these before the summer. This will send a very strong signal to the enterprise sector here and abroad that we are very serious about bolstering our global competitiveness. We know we are the most competitive economy in the eurozone and ranked fourth out of 67 countries measured by the IMD world competitiveness ranking but we can never afford to be complacent and must strive where we are lagging behind our competitors. Competitiveness is of particular importance when we face economic challenges. The success of the Irish economy over the past number of decades and since the last recession reflects the strength of our highly skilled labour force. These factors do not change overnight despite the introduction of tariffs. In this environment, we must look to and trust in our competitiveness strengths to succeed. The Government will continue to invest in areas that have delivered our success while also seeking to address our weaknesses. We can do better. Specifically, the area of efficient and timely infrastructure delivery is one in which we have much work to do. The focus of the plan will be on matters within our national control by way of policy changes that make the Irish economy more competitive and resilient to economic shocks. Emphasis will be placed on concrete and actionable recommendations that Departments and agencies can implement over the next 12 months.

During these testing times, it is important that we use opportunities such as today's debate to take stock. Yes, we are facing mounting international trade challenges. Yes, there are risks to the Irish economy, Irish workers and businesses. However, we have also heard today about the resilience and innovation of Irish businesses, opportunities for market diversification and tools and supports in place to enable Irish workers and businesses to adapt and pivot as needed through the challenges ahead. We are not alone in this. We are part of the EU, which stands together in defence of fair trade. We are in contact with like-minded partners and supporters of the multilateral trading system from which we derive so much value. We are engaged with the US Administration to emphasise the importance of our mutually beneficial trading relationship. The Government will continue to speak up for Irish workers and businesses, defend the integrity of our supply chains and push for a trading system that is fair, transparent and just. We will focus on leveraging our competitive strengths while bolstering areas that will open up new opportunities in a challenging economic landscape. Working together, we can emerge from this period stronger, more agile, more competitive and more resilient.

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