All-Ireland economy needs protecting amid tariff turmoil, Dail told

The Irish Government needs to be “alert” to protecting the all-island economy amid an upset in global trade relations, the Dail was told.

The EU published a list of potential countermeasures on Thursday in response to a 10% tariff on the EU and a 25% tariff on the auto sector announced by US president Donald Trump last month.

The total package is worth around 95-100 billion euro (£80-£85 billion) and targets US aircraft, car and car parts, and some alcohol products.

Sinn Fein TD Pearse Doherty asked Irish deputy premier Simon Harris if he was concerned about the counter proposals and if they protected the all-island economy.

“This major change in US economic policy, particularly in the context of a trade deal with Britain, brings unique challenges here on the island of Ireland for cross-border trade and for our all-island economy,” Mr Doherty said.

“The Government really needs to be alert, needs to act to ensure that the post-Brexit gains and the progress made are protected, so that the all-island economy can continue to grow and continue to prosper.”

Tanaiste Simon Harris said he had spoken to Stormont’s Economy Minister Caoimhe Archibald that morning and had agreed to meet by video-link on Friday or Monday to discuss any UK-US trade agreement.

“I’m very clear in all my engagements with the British government, I was very clear when I met the secretary of state from Northern Ireland about 11 days ago, and I’m very clear in all my engagements at a European level that the unique position of this island and the unique position of the north of this island, needs to be factored in to all discussions, both at an EU level, with the US and indeed, of course, in our ongoing discussions with the British government too.”

He said the list of EU countermeasures would hopefully not need to be used.

“I want to be able to ultimately see the countermeasures list ripped up and never come into effect, because we can get to a point of agreement,” he said during Leaders’ Questions on Thursday.

He said it was “almost impossible” to publish a list of EU counter-tariff measures that would not affect every EU member state.

“There is the time, because unlike President Trump, we’re not saying here’s the list and it comes in tomorrow or it comes in in 30 days, we’re saying here’s the list of measures that we don’t want to take,” he said.

“We have to have them prepared, though, in case we want to consult, we want to engage, there will be consultation out until at least June 10, so nothing will change in the here and now.

“We keep working at this calmly and, as you say, with cool heads.”

The European Commission published the new list of potential countermeasures on Thursday which it said it would be subject to a four-week consultation period.

The Irish Government said it would analyse the list over the coming days and said a negotiated solution remained “very clearly the goal and the preferred outcome”.