Trade deal includes ‘zero for zero' arrangement for aviation, says Simon Harris
deal between the European Union and the United States
has secured a 'zero for zero' arrangement for aviation, Simon Harris has said.
The Tánaiste and Minister for Foreign Affairs and Trade wrote to the Government Trade Forum on Sunday night to say that while a 15 per cent baseline tariff was 'regrettable', it was the maximum tariff that could be imposed on the pharmaceutical sector even after the US administration's investigation into the sector's imports.
He also confirmed that a 'zero for zero' agreement had also been secured for certain aircraft components, agricultural products and chemicals.
The details were included in a letter sent by Mr Harris to the trade forum, which includes Government Ministers, State agencies, business organisations and trade unions.
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In the letter, Mr Harris said that Sunday's agreement between European Commission president Ursula von der Leyen and US president Donald Trump in Scotland will 'avoid tariffs of 30 per cent being imposed by the US on August 1st and will also avoid the EU imposing its own countermeasures'.
Mr Harris described this as 'much-needed certainty for Irish, European and American businesses who together represent the most integrated trading relationship in the world'.
'While ultimately it is regrettable that the baseline tariff of 15 per cent is included in the agreement, it is important that we now have more certainty on the foundations for the EU-US trade relationship, which is essential for jobs, growth and investment. President von der Leyen described this as 15 per cent tariffs across the board and all-inclusive,' he said.
'We will examine the detail of the agreement in the coming days but it is our understanding from president von der Leyen that this rate of 15 per cent is a ceiling on any potential tariffs that may be imposed following the conclusion of the section 232 investigations, including those relating to pharmaceuticals and semiconductors. The EU will continue to work with the US to underline the closely integrated nature of the EU and US pharmaceutical sector.'
'While the baseline tariff is 15 per cent, there are important exclusions from that, including a zero-for-zero arrangement on aviation. Ireland had made the case throughout these negotiations for zero-for-zero arrangements in as many sectors as possible.'
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EU pushing to cap future tariffs on pharma in US deal
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'The commission president has also confirmed that there has been agreement on zero tariff levels on a number of key strategic products – including all aircraft and component parts, certain chemicals, certain agricultural products, semiconductor equipment, natural resources and critical raw materials. As the framework negotiations continue, the EU will keep working to add more products.'
He told the forum that the Irish Government will now be examining the 'full implications' of the agreement on the all-island economy, including any differential tariff rates on either side of the Border.
He said the Government will also now be looking into the 'implications' of a 15 per cent tariff rate.
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Irish Times
2 hours ago
- Irish Times
Letters to the Editor, August 2nd: On Metro and St Stephen's Green, roads policing and Daniel O'Connell's stamp
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Irish Examiner
2 hours ago
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Trump's global tariff agenda puts Ireland's pharmaceutical industry at serious risk
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After President of the European Commission Ursula von der Leyen and US President Donald Trump agreed the trade deal, the spin is that the pain of those tariffs is worth it in order to avoid a global trade war. Also, 15% is better than 30% or worse, is the thinking. Photo:The spin is that the pain of those tariffs is worth it in order to avoid a global trade war. Also, 15% is better than 30% or worse, is the thinking. Whether that represents capitulation in the face of bullyboy tactics, given that little or nothing has been asked of the US in return, is a separate conversation. Ireland's pharmaceutical industry Here in Ireland we have a bigger problem though, and that problem is the pharmaceutical industry. That industry contributes massively to the economy here via billions of euro in corporation tax contributions, with about 90 companies employing 50,000 people in highly-paid roles. A total 30,000 of those jobs are with American firms. 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These countries have invested significantly and Ireland is the owner of a lot of valuable intellectual property.' But it's certainly not a time to be complacent, Meagher argues. 'We have dropped down the competitiveness radar, and our competitors now aren't in the EU – they're in Switzerland, Singapore and the US itself. We need to be a top competitor for inward investment, and R&D and infrastructure will be critical. That is where Ireland needs to up its game.'
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