Dáil debates

Tuesday, 20 May 2025

Ceisteanna Eile - Other Questions

Agriculture Industry

11:35 am

Photo of Joe NevilleJoe Neville (Kildare North, Fine Gael)
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122. To ask the Minister for Agriculture, Food and the Marine if any analysis has been carried out to date on potential new markets for agrifood produce, exports of which to the US currently amount to almost €2 billion per annum, should tariffs be introduced; and if he will make a statement on the matter. [25705/25]

Photo of Joe NevilleJoe Neville (Kildare North, Fine Gael)
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Has any analysis been carried out to date on potential new markets for agrifood produce, exports of which to the US currently amount to almost €2 billion per annum, should tariffs be introduced? Will the Minister make a statement on the matter in the context of his visit to the US?

Photo of Martin HeydonMartin Heydon (Kildare South, Fine Gael)
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I thank Deputy Neville and the other Deputies present for staying up this late at night to raise very important questions. We are on the night shift here.

This matter is very important. There is concern among farmers over the impact of tariffs. It refocuses everyone’s mind. We are so busy day to day on our farms that we sometimes forget that we export 90% of the food and drink we produce. When key trading partners make or propose significant policy changes it can quickly have a very big impact at farm-gate level. I am very conscious that the additional tariff rate of 10% on all imports to the US, in place since 9 April, directly impacts the competitiveness of Irish agrifood exports on the US market. It makes Irish food and drink products more expensive for US consumers, who, as I have seen at first hand, really value our premium Irish products. However, the 90-day pause on the US side in relation to the higher tariff rates originally announced on 2 April, along with the EU pausing its countermeasures, have created the conditions for meaningful negotiation.

On the tariffs, Ireland’s consistent position remains that we need to get into a calm, measured and comprehensive dialogue with the US to avoid damage to our bilateral trade. This is also the position of the EU. Ireland, as part of the EU, wants to play a constructive role and will continue to be a voice for calm and measured engagement in the time ahead.

The US is the second largest market for Irish agrifood exports after the UK, with exports last year valued at almost €2 billion. My recent trade mission to the US offered me an opportunity to highlight the mutual benefit of our trading relationship with the US and the level of investment by Irish companies in the US market, creating jobs and adding value for local economies.

Meaningful negotiations with the US remain the main focus for both the EU and Ireland. The Commission is fully engaged in discussions with the US and a negotiated solution remains very clearly the goal and our preferred outcome. We continue to work in that regard.

Photo of Joe NevilleJoe Neville (Kildare North, Fine Gael)
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I thank the Minister. I will make sure to bring back to Kildare word that its two Fine Gael Deputies are among the hardest working TDs in the country. I had the good fortune of being able to nip back to Leixlip and Kilcock for events earlier this evening. I am slightly closer to Leinster House than the Minister, so I am lucky in that regard.

I will make a couple of comments on the great potential associated with trading partners such as India and China. What discussions have we had with emerging nations? Have we shone an extra light in their way?

In the context of expanding our base internally to make up for circumstances, today I was lucky enough to go to a food trail event in north Kildare. When focusing on Kildare, I was thinking about the micro-economic and micro-business sides working together with the agricultural side. Is there an opportunity to work with the Department of Enterprise, Trade and Employment on both agriculture and business to try to put a new face on farming?

Photo of Martin HeydonMartin Heydon (Kildare South, Fine Gael)
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There absolutely is. I continue to work with the Minister for enterprise, Deputy Peter Burke, and all colleagues across the Government.

On enterprise, there is considerable pressure on our whiskey distilling sector because 40% of the whiskey we export goes to the US. Changes such as those to tariffs have a direct impact on industries. I am working with the Minister, Deputy Burke, on his plans to develop an action plan on competitiveness and to help us to control the things we control.

We always consider market diversification. I am on record as saying the US tariffs challenge we face feels like Brexit mark 2. A key trading partner of ours is making or proposing a very significant policy shift, which will hurt us, our companies and consumers. It is really going to hurt US customers and companies. The EU has a role, and the EU response has an impact. Therefore, we have to use our position, based on our close bilateral relations with the US, to best articulate what exemplifies our position. It is a case of negotiating from a position of strength from the heart of the EU. That is the only place to be and it is exactly what we did during Brexit and what we will continue to do here. We will also seek to diversify our market opportunities, which is why I will travel to Japan and Korea next month and to China later this year. The Ministers of State, Deputies Dooley and Grealish, will also lead trade missions over the course of the year.

Photo of Joe NevilleJoe Neville (Kildare North, Fine Gael)
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In the context of Kildare and given that the Minister of State, Deputy Michael Healy-Rae, is seated beside the Minister, we should remember Kerry Group is one of Kildare’s major employers and exporters. We are fortunate the company is based in Naas and is a key employer in our county. What discussions has the Minister been able to have with such businesses? What mitigating measures can we put in place ahead of tariffs and what discussions can we have? No more than we have Intel in the north of County Kildare producing semiconductors, we also have a huge food industry.

Considering this from that perspective, is there the level of work we can do to mitigate any tariffs that may come in the future, to allay any potential fears and to offer assistance in looking for new and additional markets to help bridge any gap we may find from any tariffs?

11:45 am

Photo of Martin HeydonMartin Heydon (Kildare South, Fine Gael)
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As Minister for agriculture, I have a close working relationship with the food industry and businesses. When people think agriculture, they think farmers. That is only right since there are 120,000 Irish farmers in the country who produce that top-quality food. We also have 170,000 people, or close to it, employed in this sector, however, and many of those high-quality jobs are in food processing and in those companies the Deputy mentioned. They all feed into the value of our exports, which last year alone were worth €19.2 billion to the overall economy, so it is all those jobs together. When I will lead trade missions to Asia next month, as I have to America on many occasions, I will be joined by companies. I will go to the Seoul Food expo in Korea, the fourth largest food exhibition in Asia, and follow that with the World Expo in Osaka, Japan. I will be accompanied by Bord Bia, which, as a semi-State agency, is our direct link with those companies. They tell us where their key opportunities are, we work on market access issues and we work on trade promotion with those companies. What benefits food companies and their exports also benefits farmers and feeds directly down to that balanced regional development and the importance of the rural economy.

Question No. 123 taken with Written Answers.