Dáil debates
Tuesday, 1 April 2025
Ceisteanna Eile (Atógáil) - Other Questions (Resumed)
Trade Relations
11:35 am
Grace Boland (Dublin Fingal West, Fine Gael)
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131. To ask the Minister for Foreign Affairs and Trade the engagement he has had with the EU Trade Commissioner, Maroš Šefčovič; and if he will make a statement on the matter. [15151/25]
Cathal Crowe (Clare, Fianna Fail)
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144. To ask the Minister for Foreign Affairs and Trade if will report on his recent discussions with the EU Trade Commissioner; and if he will make a statement on the matter. [15336/25]
Pádraig O'Sullivan (Cork North-Central, Fianna Fail)
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145. To ask the Minister for Foreign Affairs and Trade the contribution the Government has made in discussions with EU partners in response to proposed US tariffs; and if he will make a statement on the matter. [15190/25]
Erin McGreehan (Louth, Fianna Fail)
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150. To ask the Minister for Foreign Affairs and Trade his assessment of the European Commission response to the proposed US tariffs on EU goods; and if he will make a statement on the matter. [15338/25]
Martin Daly (Roscommon-Galway, Fianna Fail)
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157. To ask the Minister for Foreign Affairs and Trade the steps he is taking to counter the possible impact of US tariffs on EU products; and if he will make a statement on the matter. [15537/25]
Grace Boland (Dublin Fingal West, Fine Gael)
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It is good to see the Ceann Comhairle back in the Chair. The Tánaiste already touched on the topic this evening but will he give an update on his engagement with the EU Trade Commissioner Maroš Šefčovič?
Simon Harris (Wicklow, Fine Gael)
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I propose to take Questions Nos. 131, 144, 145, 150 and 157 together.
I thank Deputy Boland for this question. I reiterate that I deeply regret the US decision to impose tariffs on steel, aluminium and derivative products from the EU and other trade partners, effective from 12 March last. I am also aware of the announcement by the US Administration on 26 March of its plans to introduce tariffs against the auto sector from 2 April. I met my counterpart from Slovakia in recent days, a country with a major car industry. We are all conscious in Ireland and across the European Union tonight that tomorrow there is a high likelihood President Trump will announce further potential action by the United States. I assure Deputy Boland and the people of this country that the EU will take necessary and proportionate action to defend the interests of Irish and European businesses, workers and citizens. We already announced our response to the steel and aluminium tariffs. Implementation work, including the fine-tuning of the announced countermeasures, is ongoing and it is currently planned that these will come into effect in mid-April. I welcome that the Commission has extended the implementation period because it is important to provide space for negotiation with the United States. We do not want tariffs. We want talks, not tariffs. We want engagement. It is important to emphasise that. It is essential the maximum use of that time is made. Close co-ordination with the European Commission will be essential in the period ahead. I will continue to remain in close contact with all stakeholders and our EU partners. Every opportunity for negotiation must be used. Ireland will advocate for an outcome which enhances the existing and strong transatlantic trading relationship.
In my discussions at an EU level with the Commissioner for Trade and Economic Security, Maroš Šefčovič, I have also conveyed Ireland's sensitivities with regard to the EU countermeasures currently under preparation. We need to be cognisant of potential additional retaliatory measures by the US and the impact they could have on the Irish and EU economy, including for the Irish beverages and dairy sectors. The Irish position is crystal clear. We want to avoid a series of escalating tariffs. They are economically counterproductive and would disrupt deeply integrated supply chains which benefit businesses and employers on both sides of the Atlantic. Tariffs drive inflation and hurt consumers. Increased protectionism is not in the interests of our citizens or businesses.
I have also engaged with the US Administration. Last Monday into the early hours of Tuesday morning, I had a constructive and engaging call with the US secretary of commerce, Howard Lutnick. We agreed to keep in close contact. As I already told the House, I am chairing a meeting of the Government trade forum on an ongoing basis to bring together business stakeholders, State agencies and relevant Departments to share the best information and insights and plan a way forward. I will continue my engagement with all stakeholders here at home, the Commission, other EU trade ministers and the US Administration. I will attend the meeting of EU trade ministers on 7 April in Luxembourg. This will be a key meeting for us to collectively discuss the global trading landscape and how best to respond. This country 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. I reiterate there still remains a window of opportunity for negotiation to reach agreement on the suspension of tariffs. President Trump seems intent on having his day tomorrow and making his announcements. That is up to him. We cannot control that. What needs to happen after that announcement is intensive engagement to find a way forward that is good for all of our people.
Grace Boland (Dublin Fingal West, Fine Gael)
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I thank the Tánaiste. The European Commissioner is a very experienced negotiator. It is reassuring that he seems fully in control of the situation. What is happening in America, however, is completely and utterly unpredictable. I urge the Minister to also take into consideration the impact of any trade tariffs on our SME sector. I am delighted he established the trade forum but the SME sector will need support and protection. Will the Minister let us know what he is doing in that regard?
Simon Harris (Wicklow, Fine Gael)
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Deputy Boland is right on both fronts. We are very lucky that Maroš Šefčovič is the Commissioner. He is a very experienced Commissioner who knows this country well through his previous roles during the Brexit time.
He is an engaging, consummate individual and he is in fairness already engaging with the US Administration. He was in DC last Monday. He spoke to the commerce secretary and met him just before I did and spoke to him on the telephone as well.
The second point the Deputy is really right on is the effects on SMEs. There is rightly a lot of discussion on foreign direct investment, and we are going to continue to work to keep foreign direct investment. We do not take it for granted. However, foreign direct investment does not come to Ireland for the weather. It comes here because this is a good country in which to do business. It provides businesses with massive access to 450 million consumers right across the European Union, a skilled labour force, a stable Government and stable business policies. It is a good country in which to do business and I am going to keep making that point. However, SMEs do provide about 90% of employment in this country. It is actually why the Government needs to double down on some of our policy initiatives. It is why we campaigned in the recent general election to reduce the VAT rate, for example, in the hospitality sector. That needs to happen because more than ever now we are going to have to help our small and medium enterprises. There are two figures I will put on the record of the House. Around 32% of our exports head to the United States of America, but around 17% of our imports come from the United States of America. That area of imports will have to get attention in the days ahead. It is not just about what we are exporting but also about the supply chains, particularly for small indigenous companies in Ireland and what they rely on in terms of imports and the impact that can have on the cost of business and the cost of goods to consumers too.
11:45 am
Grace Boland (Dublin Fingal West, Fine Gael)
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I thank the Tánaiste very much. I appreciate all the work he is doing on this front. I wish him the very best of luck in the coming days.