Jen Cummins (Dublin South Central, Social Democrats)
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710. To ask the Minister for Enterprise, Trade and Employment his plans to ensure possible tariffs don't impact the pharmaceutical industry in Ireland. [19362/25]

Peter Burke (Longford-Westmeath, Fine Gael)
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Ireland’s reputation as a global centre of excellence for Life Sciences (pharma, biopharma and medtech) is well-documented. The sector is a cornerstone of Ireland’s economic success, accounting for circa 100,000 jobs and over €130 billion in exports. It is also a key sector in attracting foreign and indigenous investments in research and development (R&D) and significant capital expenditure.

Ireland has developed a cohesive and integrated Life Sciences cluster consisting of highly innovative indigenous companies, large well-established foreign direct investment (FDI) multinationals, a continually developing world-class research base, along with a strong industry-focused clinical community.

Ireland is home to 13 of the world’s top 15 pharmaceutical companies. The US is a key export market for Ireland with North America the destination for 42% of all pharma exports while 41.5% go to Europe and 16.4% to Rest of World. However, this relationship flows both ways. Ireland is the sixth largest source of FDI in the US globally, and the third largest EU source after Germany and France.

The EU-US trade and investment relationship is the biggest in the world with Ireland benefiting from the decision of many US firms to set up their EU or EMEA operations here. In this regard, Ireland remains committed to the principles of free and open trade, which have underpinned our economic success. Free and open trade brings economic opportunities, creates well-paid jobs and fosters innovation. It builds economic resilience within a strong rules-based international trading system.

Accordingly, my Department is a strong advocate for an outcome which enhances the existing and strong transatlantic trading relationship. To this end, my Department remains fully engaged with the Department of Foreign Affairs and Trade on the EU response to US measures as that Department leads on discussions and decision-making through the EU’s Trade Policy Committee and in Council.

Even amid uncertainty arising from geopolitical developments, my Department is determined to ensure Ireland remains a prime location for Life Sciences businesses to innovate, grow and succeed. As a small economy, sustaining and building Ireland’s competitive advantage in this strategic area requires deliberate policy choices. To this end, my Department will soon begin the development of a national strategy for the Life Sciences – a commitment in the new Programme for Government – to ensure this important sector remains competitive, as well as adopting a coherent and ambitious approach to future opportunities.

This strategy will provide a roadmap for developing Ireland’s Life Sciences sector by incorporating diverse stakeholder input and responding to forthcoming EU initiatives for the sector to bolster Ireland’s position as a competitive hub for the Life Sciences industry. While I do not wish to pre-empt the detail of the strategy, it will certainly consider International Trade and Market Access as a key strategic theme.

At the same time, IDA Ireland continues to work tirelessly to attract and to retain FDI in Ireland. To put the importance of the agency’s work into perspective, for the third year in a row, IDA Ireland clients employed over 300,000 people in 2024, accounting for around 11% of our workforce. IDA Ireland finalised its new five-year strategy within the context of the current shifting geopolitical climate, including in the United States, with health one of the four key sectors the IDA will continue to prioritise.

For international companies, Ireland is a stable investment location with access to the EU Single Market, as well as the only English-speaking EU Member State. This provides access to the Single Market’s 450 million consumers and the European regulatory system, a critical factor for Life Sciences companies. Ireland offers a competitive, consistent, and transparent business environment, good access and connectivity. An ongoing focus on innovation, productivity and efficiency is supported, for example, by the National Institute for Bioprocessing Research and Training (NIBRT) and IDA Ireland which creates value and offers an excellent return on investment for companies located here. Added to this, Ireland provides resilience within global supply chains, providing pharma companies with manufacturing and supply chain certainty in the event of global shocks and risks such as Covid and other "Black Swan events".

Furthermore, Government has agreed to expedite the Action Plan on Competitiveness and Productivity, in response to geopolitical and trade developments. The Action Plan will focus on those matters that are within our domestic sphere of influence, that we can control by way of policy changes which can make the Irish economy more competitive and resilient to economic shocks. Bringing forward the Action Plan will allow spending and tax decisions in relation to the Plan to be reflected in the wider tax and spending decisions agreed as part of the Budgetary process. In addition to accelerating the development of the Action Plan on Competitiveness and Productivity, Government has already agreed a number of short-term measures which will bolster the resilience of firms and support competitiveness across three specific areas of (i) Enhancing International Trade Promotion, (ii) Addressing Business Costs and (ii) Improving Energy Infrastructure.

Finally, IDA Ireland will continue to target investments from across the globe through its global network of offices, and in collaboration with Team Ireland colleagues from the Department of Enterprise, Trade & Employment, the Department of Foreign Affairs, Enterprise Ireland, Research Ireland, Tourism Ireland, Bord Bia and Culture Ireland. IDA will continue to partner with international investors and companies to grow their businesses, to complete ground-breaking research and innovation, and to develop a rich, vibrant, talent capability for the needs of industry, including the pharmaceutical sector in Ireland - both FDI and Irish-Owned. Companies are positioning Ireland as a key part of their global value chains, against a backdrop of intense global competition and an increased focus on industrial policies and other geopolitical developments. The Irish sites of leading global companies play a key role in creating or adding value to the goods and services that underpin the modern global economy. IDA’s strategic objectives and targets to 2029 that are at the heart of the IDA’s client engagements are to: strengthen long-term investment through ongoing partnership with clients on new opportunities and talent development; to scale-cutting edge innovation and investment in RD&I; to drive sustainable change through investment in green and digital solutions; and to maximise regional opportunities.