Brendan Smith (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context

86. To ask the Minister for Foreign Affairs and Trade if the range of sanctions imposed by the United States on the European Union have been finalised for all sectors; the measures that will be introduced to assist businesses that will be adversely affected by these sanctions; and if he will make a statement on the matter. [47458/25]

Simon Harris (Wicklow, Fine Gael)
Link to this: Individually | In context

The United States has not imposed sanctions on the European Union.

I understand the Deputy is likely referring to the recent trade deal between the United States and the European Union and specifically the Joint Statement on an EU-US Framework Agreement on Reciprocal, Fair and Balanced Trade which was published on 21 August.

That deal confirms a single, all-inclusive 15% tariff on EU goods, including current Most Favoured Nation (MFN) rate. EU goods will therefore be subject to a 15% ceiling tariff except where the MFN rate is higher. It also provides assurance that the 15% rate will extend to pharmaceuticals and semiconductors. This provides an important shield to Irish exporters that could have been subject to much larger tariffs pending the outcomes of Section 232 US investigations into these sectors.

The Joint Statement also includes lower tariff rate carve outs for aircraft and aircraft parts, automobile and automobile parts, with further carve outs to be determined for certain products in generic pharmaceuticals and chemical precursors. These tariff rates will be at the pre-existing US MFN rate, most of which are zero.

Importantly, the Joint Statement leaves the door open for negotiation of further tariff reductions in the future on products of strategic common interest. This is a framework agreement which gives us a first step to negotiate a more comprehensive and formal agreement with the US in the future.

The Government will continue to support businesses through its agencies, including Enterprise Ireland. We must also look for other opportunities to diversify markets for Irish business. The Government Action Plan on Market Diversification was published on 25 August. While we want to continue to do business with the US and indeed want to grow business, it is important that we take every opportunity to identify new markets.