Heydon: Trade agreement a 'positive' for Irish butter exports
Yesterday evening (Sunday, July 27), the EU reached a trade agreement with the US, after US President Donald Trump met with European Commission President Ursula von der Leyen during Trump's visit to Scotland.
The announcement of a trade agreement comes after months of negotiations between the two sides and Trump's threat of higher tariff rates to apply to EU goods from August 1 if a deal was not struck.
Minister Heydon believes that trade is essential for Ireland's export-focused agri-food sector.
He said: "The United States is the second most important market for Irish agri-food, with exports valued at €2 billion last year.
"Ireland's strong trading relationship with the US has mutual benefits for businesses on both sides of the Atlantic," the minister added.
The agreement announced yesterday will avoid tariffs of 30% being imposed by the US on EU goods from August 1.
Instead, a baseline tariff of 15% on EU goods to the US is included in the agreement.
Minister Heydon said: "Since April, our food and drink businesses have faced major uncertainty around future US trade policy. President von der Leyen has confirmed that the 15% tariff rate agreed will be a maximum tariff rate, with no stacking.
"This is positive for Irish butter exports in particular, which since April have faced an additional tariff rate of 10% stacked on a pre-existing tariff of 16%."
"President von der Leyen also referenced certain products being included in a 'zero-for-zero' tariff rate. I look forward to seeing more detail on this in the coming days," he added.
Minister Heydon noted that he will be engaging with stakeholders on the details of the agreement.
Minister of State at the Department of Agriculture, Food and the Marine, Noel Grealish also welcomed the announcement of a trade agreement.
He said: 'I welcome this outcome which will give certainty to Irish food and drink businesses exporting to the US market.
"Together with Minister Heydon, my department and Bord Bia, I will continue to support new market development and market access efforts for our quality, sustainable food and drink products,' Minister of State Grealish added.
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