Donnchadh Ó Laoghaire (Cork South-Central, Sinn Fein)

Yet again this week, we have seen statements by US President Donald Trump in relation to bruising and punishing tariffs on European economies and, by extension, Ireland. The debate around tariffs has gone back and forth. Deadlines have been postponed, not met. However, we would be foolish to dismiss the risks to Ireland. For workers in the sectors most at risk, it is not an exaggeration to say that they hear such headlines and wonder about the future of their jobs, livelihoods and futures. They are in sectors such as dairy, agrifood, drinks, aviation, life sciences, medtech, pharma, tech, financial services and many more that have a large exposure to the US. In my own county of Cork, tens of thousands of people are employed in life sciences, medtech and pharma.

While deadlines have been postponed in the past, there is no guarantee this will always be the case. The focus has to be on progress and achieving a deal to avoid the worst excesses of the potential of tariffs. Trade wars are bad for everyone. I do not believe they are in the interest of America or Europe, and the only way to win a trade war is to not be in one. We hope that cooler heads will prevail, but we must also have a clear eye. It may not come to pass, but we need to ensure we are prepared.

Sinn Féin has warned for some time that the policies of successive Governments have left Ireland uniquely vulnerable to a change in the economic climate and to tariffs. That is due to Fine Gael and Fianna Fáil’s failure to invest in infrastructure, excessive reliance on tax incentives and failure to build up our indigenous industry. Our energy, transport, water and housing infrastructure is far behind where it should be. We are in a housing crisis of historic proportions and have renewable energy companies redirecting resources to other markets because we are so slow to get off the mark. If tariffs come to pass and begin to bite, we will regret the failure of successive Irish Governments to address those issues.

The Government urgently needs to step up preparations for potential tariffs. The date of 1 August is two weeks away. The approach of the Government should include five key elements. We need to: ensure Irish interests in our key sectors are considered at the heart of the European Commission; diversify our trade because we are too reliant on too few markets; develop support schemes for businesses most affected; avoid tariff distortions between North and South; and, crucially, invest in infrastructure.

To expand on using our voice at European level, we need to ensure that any European negotiating policy has a clear eye to what Ireland’s greatest areas of exposure are. It appears as if whiskey and aviation are still on the EU retaliatory list. That is a concern. Whiskey has been hit time and again. It is an industry that has grown considerably in recent years, and potentially faces immediate risks in the event of further increases in tariffs. Aviation is also an area where there is a huge Irish profile and significant impacts for the industry here.

We need to diversify the markets we are trading with, with a view to future trade missions. While the US, Britain and Europe will always be our main trading partners for reasons of language, culture and so on, there is potential to deepen trade with countries such as Mexico, south-east Asia and other emerging markets.

What the Government has been talking about is not ambitious enough. For businesses, the Government needs to prepare export facilitation supports, language supports and energy supports and examine export credit insurance. We need to invest in our infrastructure, where there is a huge gap. In addition, we need to ensure that the potential for distortions between North and South are avoided and there is good co-ordination with the Executive in that regard.

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