Politics watch: Taoiseach defends EU-US trade deal amid criticism
James Cox
Here, we have a look at the topics likely to dominate political discourse in the week to come.
EU-US trade deal
The Taoiseach has welcomed a new trade agreement between the US and EU as having “avoided a damaging trade war”.
Taoiseach Micheál Martin also said there is “much to be negotiated” following what he termed a “framework agreement”.
Speaking to the media in Dublin on Monday, Mr Martin said it “opens up the prospect of more significant strategic collaboration between the US and Europe on quite a number of issues”.
“It also avoids further escalation, or indeed a trade conflict, which would be very, very damaging to the economies of the United States and of the European Union,” he said.
“It’s important to say that Europe never sought tariffs, or never sought to impose tariffs, and fundamentally, we are against tariffs: we believe in an open trading economy.”
Mr Martin said it is a very different situation than before April 1st.
“New realities are in play and so at a broader level, the stability and predictability that this agreement brings is important for businesses, is important for consumers and indeed patients when it comes to the manufacturing and distribution of medicines,” he said.
“In essence, we have avoided a trade conflict here which would have been ruinous, which would have been very damaging to our economy, and to jobs in particular.
“The challenge now for Europe is to work on its own inefficiencies, to reduce barriers within the single market, to press ahead more ambitiously and more proactively on trade diversification and trade deals with other countries that would facilitate that market diversification that is required.
“Meanwhile, there is much to be negotiated in the aftermath of this framework agreement.”
Asked about mixed reactions to the deal in Europe, Mr Martin said: “Nobody is welcoming tariffs with open arms.
“I think we’ve been consistent in saying that we don’t agree with tariffs, that we prefer if there weren’t tariffs, but we have to deal with realities.
“I understand people criticising, but given the balance and the options here… in my view, I would appreciate the work of the (European) Commission in this regard, and the avoidance of a trade war is preferable, in my view, and that’s the key issue.”
Businesses have had a mixed reaction to the agreement.
In a statement, business lobby group Ibec said the deal will still leave a "substantial burden" for some industries.
Ibec chief executive Danny McCoy said: "Today’s trade agreement between the US and EU brings an end to a significant amount of uncertainty for some businesses. However, a 15 per cent tariff still represents a substantial burden for many industries. Sectors which rely heavily on the US market and operate within small margins, will once again be significantly impacted by an additional 5 per cent tariff, on top of what they have already had to absorb over the past several months and well in excess of the 1 per cent effective tariff which existed before April."
Mr McCoy added: "Our message to the Government, as it was with the 10 per cent tariff, is that the most exposed sectors will require support similar to the interventions provided as a response to Brexit.
"It is important to note that the details are still emerging and will only be worked out as today’s framework is fleshed out. These details will be critically important for Ireland. Pharmaceuticals and Semiconductors which equate to 75 per cent of Ireland-US trade are, we understand, included in the 15 per cent deal. However, there is still a question around the stability of that rate over both the short and long-term in the face of ongoing Section 232 investigations."
Speaking on RTÉ's News at One, IEA chief executive Simon McKeever said: "I think the EU was backed into a very difficult negotiating position because of the lack of investment in defence and security spending over the last number of years. It's totally dependent on the US in that space.
"I don't think it's a good deal. I don't think it's a great deal and for Irish businesses, they're now faced with a 15 per cent tariff they weren't faced with before and they'll need to deal with that.
"I think that we were negotiating with one if not two hands tied behind our back. I don't think we were in a very strong position because of the defence issue."
He called on Tánaiste Simon Harris to get the trade forum together urgently.
"Companies are going to need help. We have called for a tariff adjustment fund, which is based on the Brexit adjustment reserve and was brought out in 2021.
"Irish companies are going to need time to get to grips with this. I'm calling on Simon Harris to please get the trade forum together tomorrow or on Wednesday, because we need to get back to our members with this."
French prime minister François Bayrou called the deal a "dark day" for Europe.
“It is a dark day when an alliance of free peoples, united to assert their values and defend their interests, resigns itself to submission,” Mr Bayrou wrote on X.
Michael D Higgins tells EU presidents silence on Gaza would be a ‘moral failure’
President Michael D Higgins has written to other European presidents to say that silence on Gaza would be a moral failure.
He said that while Israel has a right to defend itself, they cannot let the “horrific” attack on October 7th, 2023, “provide a licence or cover” for the scale of civilian deaths in Gaza.
Mr Higgins wrote the letter to the Arraiolos Group, an informal organisation representing presidents of EU countries which meets once a year.
The political forum is named after the Portuguese town where the first meeting took place in 2003.
“I am sure that we all remember with horror the moment when news broke of the horrific atrocities carried out by Hamas as we returned from our meeting of the Arraiolos Group in Porto in October 2023,” he said.
“These atrocities were rightly condemned by all member states. We were not silent and called for the unconditional release of all hostages.
“While Israel has a right to defend itself, we cannot let that horrific event provide a licence or cover for the totally unacceptable loss of life, including from malnutrition and dehydration by infants and mothers that is now being perpetrated in Gaza.”
Abroad
The EU-US trade deal was announced during US president Donald Trump's visit to Scotland, where he appeared alongside European Commission president Ursula von der Leyen.
He also appeared with UK prime minister Keir Starmer at a press conference on Monday, where they addressed a range of topics.
Mr Trump said the focus in Gaza was getting food to people amid ongoing Israeli blockades of aid that have left the population on the brink of mass starvation.
Mr Trump also suggested he will bring forward a deadline for Russia to agree a ceasefire with Ukraine.