Thomas Byrne (Meath East, Fianna Fail) | Oireachtas source

I move amendment No. 2:

To delete all words after "Dáil Éireann" and substitute the following: "notes that the United States (US) has implemented tariffs on all of its trading partners, with the European Union (EU) and Ireland facing tariffs of:

— 25 per cent on steel, aluminium and derivatives since 12th March;

— 25 per cent on the automotive sector since 3rd April; and

— 10 per cent on remaining goods since 5th April, rising to 20 per cent on 9th April;

further notes that the pharmaceutical and semiconductor sectors are excluded from tariffs at this moment, along with the commodities of wood/lumber and copper;

regrets that the US action will undermine the global trading system and economic integration which has delivered immense benefit to all countries and has helped lift hundreds of millions out of poverty across the world;

recognises that:

— the Government is working intensively with EU partners on the EU response;

— the European Commission, in line with the EU Treaties, holds the competence for Trade policy and will represent the Union's interest and the interests of all EU member states in negotiations with third countries;

— the EU, while preparing for a proportionate response, at all times has emphasised its openness and willingness to negotiate and that Ireland has strongly supported this position;

— the Government, working in close coordination with the European Commission, is also in regular contact with the US administration, to reinforce our collective interests in negotiations with the US;

— the Government continues to engage extensively with stakeholders here, particularly through the Government Trade Forum, in shaping the Irish and EU response to the issues; and

— the Government is conscious of the potential impacts of differential US tariff rates on the EU and the United Kingdom in Northern Ireland, and on the all-island economy, and is in ongoing contact with the Northern Ireland Executive and the British government in this regard;

acknowledges that:

— the success of the Irish economy is based on openness to trade and investment with all countries and this model has served the Irish people extremely well;

— employment in the economy is at high levels, with 2.8 million people at work;

— effective management of the public finances has allowed the previous Government to establish the Future Ireland Fund and the Infrastructure, Climate and Nature Fund;

— Ireland has a diversified trade profile with strong exports to all regions of the world, with total trade in goods and services in 2023 of over €1 trillion; and

— Ireland and the US have a significant and mutually beneficial economic relationship, and that Ireland is the 6th largest source of foreign direct investment into the US, and more than 200,000 people are employed by 770 Irish companies across all 50 states;

welcomes:

— the Programme for Government commitments to:

— support an open, multilateral, rules-based trade system, promoting free trade policies and economic growth;

— support an ambitious EU trade agenda, promoting new Free Trade Agreements, with proper assurances regarding sustainability, human rights, and the protection of our agricultural sector;

— strengthen our political, cultural, economic and trade relationship with the US at all levels, recognising the unique significance of the transatlantic relationship between us;

— prioritise economic competitiveness both in the EU as a whole, and in Ireland in particular, and in this context continue to promote international trade, which is vital to the Irish economy; and

— publish a whole-of-Government Action Plan on Competitiveness and Productivity which will cover industrial policy, reducing the cost and regulatory burden on business, investing in infrastructure, digital regulation and reform, energy reform, international trade and research and development and innovation;

— the development of a new global Ireland 2040 strategy this year, which will outline an overarching masterplan for further enhancing our influence in international affairs and trade;

— the development of a renewed trade and investment strategy to be developed in 2025;

— continued development of the Ireland House model and the co-location of Irish Embassies and State enterprise agencies to support Irish business globally; and

— in addition, the development of a new action plan on trade diversification for consideration by Government by end-May 2025.".

As everybody appreciates, the events of last week have fundamentally changed the international trade landscape. For Ireland and our partners, a sweeping 20% tariff on all goods entering the US marks a serious escalation in a trade dispute that began last month, first with tariffs on steel and aluminium and subsequently on the automotive sector. It is important remember as well that this debacle at international level effects both foreign direct investment into this country but it also seriously affects the indigenous sector. The Government has been and will be honest and upfront on this.

The potential consequences of these measures to the Irish and European economy are serious. It is important to remember as well that the Irish economy is anchored in the European Union and our location therein and membership thereof has been a significant factor in our economic success over the past 50 years. We have gone from 1 million people employed at the time of joining the EU to 2.6 million or 2.7 million at the moment. The tariffs jeopardise global value chains and supply chains that have been carefully built over decades. They create instability and uncertainty for businesses and consumers alike. Inflation is now going to be driven. Consumers will be hurt by these tariffs on all sides. Nobody is going to be exempt from this.

It is also important to note that the tariffs do not affect the UK in the same manner, and they will, of course, as has been mentioned, have an impact on the all-island economy. That is a fact. That has been imposed upon us. The Government is very conscious of this and we are working through these issues at all times. There are no winners. US taxpayers will be losers as well and they will bear the burden of higher costs. The negative effects, of course, have been seen in the stock market. All around the world, significant losses have happened as President Trump has maintained his stance. It is deeply concerning, but the response of Ireland and the response of Europe must be calm, strategic and measured.

When we ask about the European Union, we must remind ourselves that we are the European Union with all the other member states and all the peoples of Europe. We must continue to seek negotiated solutions. Every disagreement must end in agreement. This is our focus because there is time to strike a deal. Following the White House announcements, President Ursula von der Leyen has repeatedly been clear that the EU will prepare its response, but she has also stressed that there of course remains time to address concerns through negotiations. I said likewise publicly, but also directly in my discussions with Commissioner Maroš Šefčovič. This was the tone indeed when the Tánaiste met with Maroš Šefčovič and fellow trade ministers in Luxembourg on Monday to review the situation and consider the best way to respond. There was a strong sense of unity in Luxembourg in the EU response.

The EU will seek to find a negotiated solution, but it will do so from a position of preparedness. The EU will respond in a proportionate manner that protects our businesses and our citizens, and we will take the necessary steps to safeguard our interests. In this respect, the European Commission has confirmed that it will seek the agreement of EU member states to impose rebalancing measures related to steel and aluminium tariffs this week. We expect that decision will be taken today, maybe as we are speaking. There have, of course, been many media reports on this, but we are still awaiting the formal decision.

In recent weeks, the Government has conveyed Ireland's sensitivities to the Commission, and I have done that myself directly with Commissioner Šefčovič when I met him, with regard to the inclusion of bourbon and dairy on the list of products for EU countermeasures. We understand that both spirit and dairy products have been removed from the list of EU countermeasures, and this is welcome. It is very important to remember as well that those products are already tariffed. What we did not want were super tariffs on them on top of what has already been imposed. When we talk about the spirit and dairy industries, we are talking about the indigenous sector. Deputy Tóibín was talking about FDI and problems with that, but this is the indigenous sector. There are only so many million people on this island. They have to export to create markets for themselves. There are not enough people on this island to eat all the food and drink that we produce. We have to export it, and that sector has been very badly affected and people have expressed this publicly.

Ireland's response is grounded in some core principles, that is, unity with our EU partners, clarity in our national interest and a relentless commitment to dialogue and negotiation. This commitment to dialogue and negotiation also extends directly from the Irish Government to the US Administration. Indeed, the Tánaiste is meeting the US Secretary of Commerce in Washington today. With regard to this idea that somehow we do not have links with the Republican Party, I can say that I have met as many Republican members of Congress in my time as Minister as I have Democrats, and the Taoiseach was one of the few Prime Ministers in the White House with a Republican President. Our embassy has attended the Republican and Democratic conventions and, indeed, the Cathaoirleach of the Seanad, Senator Mark Daly, has set up Irish caucuses is in every single state house in the United States. The key thing about them is they are bipartisan. When I go to America, there are only about two or three issues on which the American Congress is united. I always say that we appreciate very much the bipartisan approach they have taken in the USA to Northern Ireland. We very much continue and maintain dialogue with Republican politicians in the United States. It is really important. In fact, we have nine offices in the US and our consuls and diplomats there maintain excellent contacts with politicians across the aisle.

It does remain to be seen what the US approach to tariffs on pharma is. We of course heard what the President said last night, and uncertainty obviously remains. The pharma sector has operated with zero tariffs for 30 years and there are obvious reasons for that. There is real concern among people and businesses about the potential impacts these tariffs may have on the Irish economy, so it is good that this motion is before the House. There will be Dáil statements separately as well. Some of the claims need to be rejected, however. As I said, the Government is taking a strong role in engaging with the US Administration, and we are encouraging our EU partners to pursue pragmatism and negotiation while also demonstrating our preparedness to act if necessary. Our economy is in good health, and it is the prudent management and stewardship of our country's finances over the past decade that has prepared us for challenges that may come. Indeed, from Seán Lemass on, we opened up our country not just to foreign direct investment but also to innovation here in Ireland and that has also prepared us for the challenges.

FDI has been integral to the success of our country. On this idea that Aontú proposes that it is only for developing countries, why does it not say that to an investor? I dare Deputy Tóibín to say that to some investor coming into County Meath because he would not say it to them?

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