Dáil debates

Tuesday, 11 February 2025

Ceisteanna Eile - Other Questions

International Relations

8:25 am

Photo of Naoise Ó CearúilNaoise Ó Cearúil (Kildare North, Fianna Fail)
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8. To ask the Minister for Foreign Affairs and Trade if he will report on any discussion of EU-US relations at the recent Foreign Affairs Council; and if he will make a statement on the matter. [4381/25]

Photo of Ruairí Ó MurchúRuairí Ó Murchú (Louth, Sinn Fein)
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Tá an Teachta Martin Daly ag glacadh Ceist Uimh. 8 faoi choinne an Teachta Ó Cearúil.

Photo of Martin DalyMartin Daly (Roscommon-Galway, Fianna Fail)
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I congratulate the Tánaiste and the Minister of State. President Trump was elected on a platform of isolationism and protectionism. It is not clear whether he is using tariffs for crude political leverage or engaging in a true trade war. Neither is it clear if the traditional American guarantee to European defence is secure. Given the consequent economic and security instability and Ireland's unique exposure to the threat of tariffs, I ask the Tánaiste and Minister for Foreign Affairs and Trade to report on any discussions on EU-US relations at the recent Foreign Affairs Council.

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael)
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I thank the Deputy for the question and congratulate him on his election to the House. I look forward to working constructively with him. This question is timely because it is important to work together at an EU level on our approach to the transatlantic relationship. The European Union and the US share a strong, mutually beneficial partnership. That was true before the US presidential election and is equally true after the election. This is a partnership which has for decades underpinned global stability, sustainability and prosperity. The transatlantic relationship is essential and must be supported by broad and robust institutional frameworks and bipartisan engagement.

I attended, as the Deputy alluded to, the Foreign Affairs Council meeting in Brussels on 27 January, during which Ministers held a discussion on European Union relationships with the US. While it was clear that some of the new US Administration's policies will have a potentially challenging implication for the EU, it was agreed that we need to rigorously assess the impact of any actions by the Administration and work in a united way to engage as constructively as possible with it.

The EU and US are stronger and safer when they work together. Ministers noted that Europe is itself an economic heavyweight but that the EU needs to improve its competitiveness. I really believe this. It is not the job of the European Union to commentate on elections in other countries. Of course we need to monitor them, but it is also our job to control what we can control. The European Union is an economic heavyweight but we need to do more with respect to being competitive, innovative, responsive and agile. It is important to focus on the new US Administration’s actual policy decisions and their implications for Ireland and the EU. Ireland and the EU will need in particular to focus on the factors I referenced that are within our control, such as investing in infrastructure to enhance our competitiveness.

In addition to the discussion on EU-US relations at the Foreign Affairs Council last month, EU Heads of State and Government also discussed the issue at their informal retreat in Brussels on 3 February. An important focus of that discussion was the need for EU unity, especially in responding to any decision by the US Administration to impose tariffs on EU goods or services.

8:35 am

Photo of Verona MurphyVerona Murphy (Wexford, Independent)
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Deputy Ó Laoghaire has a supplementary question on this matter.

Photo of Donnchadh Ó LaoghaireDonnchadh Ó Laoghaire (Cork South-Central, Sinn Fein)
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I think Deputy Martin Daly is first. Is that how it works?

Photo of Verona MurphyVerona Murphy (Wexford, Independent)
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Yes, Deputy Daly is first.

Photo of Martin DalyMartin Daly (Roscommon-Galway, Fianna Fail)
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I thank the Tánaiste for his answer. It is critical for a country as small as ours, with a small economy very much exposed to the tariffs coming from the United States or any change in the economic climate affecting the relationship between the United States and the European Union, to work through the European Union, which is a powerful economic bloc, to advance our interests. I thank the Tánaiste for his answer.

Photo of Donnchadh Ó LaoghaireDonnchadh Ó Laoghaire (Cork South-Central, Sinn Fein)
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This is an area that will require a great deal of careful consideration. I understand the point the Tánaiste made that pronouncements and policy are not always the same thing with this Administration. Nonetheless, preparation will be crucial. There are two elements to it. It is important we are clear-sighted without being defeatist. There are undoubtedly vulnerabilities. Notwithstanding that, there is no need to be alarmist without having seen any actions. Clearly, we need to do what we can, primarily at a European level because engaging with the US Administration on tariffs is a European competency. In terms of preparedness, however, we need to support businesses to potentially seek out new markets. One of the lessons that needs to be learned from Brexit preparedness, some of which worked and some of which could have been better, is that we need to support small businesses better in seeking out markets, including non-English speaking markets, for example, in southeast Asia. Supporting businesses, especially small and medium businesses, to reach non-English speaking markets is an area we need to work on.

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael)
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Since the discussion at the Foreign Affairs Council, President Trump has announced his decision to implement tariffs at 25% on steel and aluminium imports to the United States, commencing in March. Tomorrow, I will attend a virtual meeting of EU trade ministers, where ministers from all 27 member states, along with the European Commission, will discuss this development and consider appropriate responses. Ireland's and the EU's view is clear, however: tariffs hurt businesses and consumers. They are not in the interests of the EU or Ireland and we do not believe they are in the interests of the United States either.

I agree with Deputy Ó Laoghaire that we need to be prepared and not to be alarmist or fatalistic. We have to work our way through this. Donald Trump is the democratically elected President of the United States of America and will be for four years. We have to look at how we can respond, deal with the challenges and seek opportunities where we can. I take the point on having to be prepared to support businesses, especially small and medium businesses, in any turbulence that may arise. That is one of the reasons we have established the consultative trade forum, which I will chair, to be able to bring that into the room and be able to engage on these matters.