Approved pharma tariff rate a "significant achievement" for EU

Formal confirmation that pharmaceutical products and semiconductors from the European Union will face a maximum tariff of 15% under the new EU-US Framework Agreement, has been welcomed by Fianna Fáil MEP for Midlands North-West, Barry Cowen.

The Fianna Fáil MEP said the announcement represents a significant achievement for the European Union, along with the inclusion of ‘zero for zero’ tariff rate carve-outs for aircraft and aircraft parts, with further carve-outs to be determined for certain products in generic pharmaceuticals and chemicals.

As a member of the European Parliament’s International Trade Committee, MEP Cowen highlighted his ongoing engagement with Trade Commissioner Maroš Šefčovič and his team in recent months. He said he will continue to work closely with them to represent Irish interests, including in crucial ongoing sectoral talks around wines and spirits.

The MEP stressed that this is a framework agreement, a first step towards negotiating a more comprehensive and formal trade arrangement with the United States in the future.

“This announcement is proof that the EU was right to hold its line in negotiations and that those who so quickly and fervently dubbed the deal an utter failure were wrong. Pharma and semiconductors are now capped at 15%, not the immediate 200% tariffs some stoked fears around. This is a major win for Ireland and for Europe

“As a member of the International Trade Committee, I have been engaged with Commissioner Šefčovič and his team throughout this process. Their strategy has delivered breathing room for Irish exporters in critical sectors – a result that populist criticism would have put at risk.

“Confronted by a Trump administration determined to introduce punitive tariffs, the EU had limited options, but through unity and strategy we avoided a far worse scenario.

“While we welcome this outcome, there is more work ahead. Wines and spirits, in particular, remain a vital priority for producers across the Midlands North-West and indeed the whole of Ireland. I will continue to press for a fair result in that area. These negotiations are ongoing and, if we remain united and strategic, I’m optimistic for the potential outcomes," MEP Cowen said.