Ireland's pharmaceutical sector will be protected from US President Donald Trump's tariffs thanks to a long-term multilateral agreement, the business minister has said.
However, Peter Burke also noted that there is a plan that will be activated if the US imposes tariffs on the sector.
According to the UN International Trade Statistics, Ireland is one of the world's largest exporters of pharmaceuticals. In 2023, the United States was the top market for Irish goods, with Americans purchasing products worth €54 billion, of which about €36 billion were pharmaceuticals and chemicals.
Pharmaceuticals are normally exempt from tariffs under a World Trade Organization agreement signed in 1994. But there is growing speculation that Mr Trump may continue to ignore international norms and include pharmaceuticals in any tariffs against the EU.
Enterprise Minister Peter Burke. Photo: Gareth Cheney/Collins
Mr Burke told RTÉ's Today programme with Claire Byrne: “We know that the new Trump administration has appointed a new ambassador to the World Trade Organisation. Obviously, tariffs will be zero. However, pharmaceuticals are very much covered by a multilateral agreement that has been in place for many years and has always been relevant for innovation in the sector. So I think it's vital that we protect that.”
“It is also worth noting that many of the large pharmaceutical companies in our country have been here for 50, 60 and even 70 years. If you look at their portfolio, about 67 percent of all their exports go to the EU and other countries, not to the US. This shows our diversification in the portfolio.”
“However, I think we as a country are constantly confronted with protectionism. As an open economy, we recognise the problems that tariffs create. We experienced this in 2018, when tariffs of 25 per cent were imposed on steel and 10 per cent on aluminium. We have, of course, initiated a number of measures in response to the EU’s actions, which are now suspended and will be in place from 1 April this year. So we have been very co-operative, and Tanaiste Simon Harris has also worked with the [EU] Trade Commissioner on this.”
Mr Burke pointed out that Ireland's economy was very diverse and the country should continue to focus on that diversity and work to address manageable issues.
He also predicted that inflation in the US could rise as a result of tariffs, which have historically failed to achieve success. Open trade is important and Ireland needs a “strong trading relationship” with the US, which means negotiations, he said.
“President Trump can change his tactics. He can lower these tariffs. He is committed to negotiations. So I think what we need to do is we have an established mechanism through the Trade and Technology Council and the EU context, and we need to work to highlight that Ireland
Sourse: breakingnews.ie
