Donna McGettigan (Clare, Sinn Fein) | Oireachtas source

I am sure we are all relieved that so far pharmaceuticals and chemicals have been exempted from the 20% tariff imposed on exports to the USA from the EU. However, reports are now suggesting that President Trump will be introducing tariffs on these sectors.

While tariffs are usually seen as a tool to protect local industries, they can also have a negative impact for small, export-driven economies likes ours in Ireland. Tariffs imposed by the USA in 2018 and reciprocal tariffs imposed by the EU resulted in reduced trade in steel and aluminium. That should have been a wake-up call that tariff trade wars damage everyone, and that the State cannot be over-reliant on one export market. We have heard for years that we have a small, open economy which is highly susceptible to international economic factors, but we have seen few, if any, tangible measures to reduce this susceptibility. The Government must do more to promote indigenous industry rather than depend on international actors who do not have the interests of Ireland at heart. Successive Governments have been far too reliant on multinationals attracted here using tax incentives.

County Clare is home to a number of manufacturing firms, but it is also home to small companies, family-run farms, high-tech manufacturing and global firms in the Shannon free zone. They rely heavily on smooth tariff-free trade with countries and are likely to suffer as a result of tariffs. Some 77,500 people are directly employed by pharmaceutical and medical device manufacturing companies in Ireland across 213 factories. Many thousands more are employed indirectly. Companies will need to adapt to this and inevitably jobs will be lost as a result. This will affect those already struggling with the cost-of-living crisis.

The agriculture sector is also likely to be impacted by tariffs. The US Government has also blamed non-tariff barriers for their trade deficit. This means environmental, food, agricultural and other standards must not be sacrificed, undermining our standing as an agricultural producer and our sovereignty.

We are hugely overexposed to the USA due to the policies of previous Governments. Some 32% of exports from this State go to the USA, and the next highest in the EU is Italy at just 10%. We must ensure the EU does not take any retaliatory actions that are likely to negatively affect us disproportionately. The primary job of the Government now is to protect the interests of Ireland, both with the USA and the EU. The outworkings and changes of these tariffs are not yet known. The fact that pharma has not been hit with these tariffs gives us the space to put contingency plans in place and make sure supports are put in place for workers and industry. However, this needs to be done quickly as we do not know when these tariffs will change, so we must keep all options on the table. It is essential to continue with the pharmaceutical tariff elimination agreement that has been in force since 1995.

Having two regimes on our island is also likely to disproportionately impact on our Border communities. Assistance measures will be needed as we are all too aware of the devastation the Border can have on communities on both sides as companies move to the side where they can maximise profits at the expense of the other side of the Border. The real solution to this problem is reuniting Ireland. In the immediate term, the Government must call a meeting of the North-South Ministerial Council to protect the all-Ireland economy.

We have seen a number of election promises abandoned in recent weeks. This cannot become an excuse to renege on more of them. Our housing, healthcare, childcare, transport, infrastructure and education sectors, and other sectors, all need urgent investment and development. While it seems likely there will be a drop in tax receipts because of tariffs, we need countercyclical investment from Government to offset this.

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