Niall Collins (Limerick County, Fianna Fail)

I share Senator Ahearn’s concern and disappointment on the imposition of US tariffs.As I have said many times, tariffs are not good for anybody. They hurt business and consumers on both sides of the Atlantic. However, US trade policy has shifted and both Ireland and the EU have to respond to this new reality. The life sciences sector, which both the pharmaceutical industry and medtech are part of, is a significant sector of the economy and employs over 100,000 people. The Government recognises its importance, as evidenced by our commitment to develop a national life sciences strategy. After months of uncertainty, on 21 August, the EU and the US published a joint statement on the EU-US framework agreement on reciprocal, fair and balanced trade. It confirmed a single 15% tariff on EU goods inclusive of current MFN rates. It also made clear that any new tariff announced by the US under its section 232 investigation would be capped at this level. While there have been recent announcements on possible higher tariffs on pharmaceuticals, the EU was clear that the 15% tariff on the EU was a cap, which was confirmed by the US side. This example underlines the value of the agreement reached in August. This clear, all-inclusive 15% tariff ceiling for EU exports represents an insurance policy that no higher tariffs should emerge for Irish and European economic operators. The joint statement also includes lower tariff rate carve-outs for aircraft and aircraft parts, automobile and automobile parts. Importantly for the pharma sector, further carve-outs are to be determined for certain products in generic pharmaceuticals and chemical precursors. These tariff rates will be at the pre-existing US MFN rate, which is zero. This is welcome.

During the lead-up to the EU-US joint statement, the Tánaiste engaged intensively with EU and US counterparts, in particular the US Secretary of Commerce, Howard Lutnick, trade representative Jamieson Greer and Commissioner Maroš Šefovi, emphasising the huge potential and scope for the EU and the US to work together in the interests of patients, their economies and the pharma industry. While of course we do not want any US tariffs, the joint statement provides a degree of stability and certainty in what has been a very difficult period for Irish and European exporters to the US. I strongly believe this was the best available deal. However, I am acutely aware of the impact of higher tariffs and the existing difficulties that many Irish exporters have already faced this year as well as the possible implications for the all-Ireland economy. I fully appreciate that there will be disappointment and concern in some sectors, including medtech, which are hugely important sectors for the Irish economy. Importantly, however, the joint statement leaves the door open for negotiation of further tariff reductions in the future on products of strategic common interest. Ireland is now working with the European Commission to see what exemptions can be made in areas of interest for Irish exporters. We continue to advocate for these exemptions for the medtech sector, as well as for spirits.

Since the US Administration entered into office in January this year, the impact of US tariff policy on Ireland’s exports to the US has been a priority for the Government. The Tánaiste has made this clear to the US Administration, including in his most recent meeting with US Secretary of Commerce in September. In this regard, we have also had ongoing contacts with the European Commission to discuss Irish concerns, including with regard to the pharmaceutical and medtech sectors. This is done formally through Ireland’s representation at the trade policy committee, our ambassador to the EU in Brussels and the Foreign Affairs Council of trade ministers, where EU-US trade relations have been regularly discussed throughout the year. The Tánaiste has discussed Ireland’s concerns on a number of occasions directly with Commissioner Šefovi, most recently when he visited Dublin earlier this month where they discussed our concerns regarding pharma and medtech. I am in no doubt that the Commissioner understands the importance of these sectors for Ireland.