European Union commissioner Michael McGrath has said “the world has changed” and that economic terms “we had six months ago are no longer available” amid ongoing discussions on an EU-US tariff deal.
Speaking to RTÉ’s This Week programme, the commissioner also said that while it has been reported a 15% tariff deal could be agreed today, it is “not a case of turning up and signing on the dotted line” and that today’s talks “will take on a dynamic of its own”.
Mr McGrath said this evening’s meeting between European Commission president Ursula von der Leyen and Us President Donald Trump is a “positive” sign, the outcome is “not certain”.
He described today’s talks as “a live negotiation”, and said “we [the EU] are hoping for a conclusion and a good outcome, but we also have to be prepared, other outcomes are possible”.
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Mr McGrath said “we are close to the deadline of 1 August” for a tariff deal to be struck and that “very often it’s the case you narrow negotiations down to a select amount of items”.
Mr McGrath declined to discuss the prospect of a 15% tariff deal, saying he “can’t get into numbers at this time”.
However, he said the EU’s “objective” is to “bring clarity and certainty” to businesses, including the pharmaceutical sector, adding that “it remains to be seen whether that can be achieved today”.
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“What we will see today is hopefully a political statement, a political declaration, although that is not certain,” he said.
Asked if a 15% tariff rate would be a bad deal for the EU, Mr McGrath said: “I don’t think we should reach any conclusion yet”.
He added that any deal needs to be seen in the context that “the terms we had six months ago are no longer available”.
Questioned on whether EU member states will all agree to any potential deal, he said that would ultimately be up to member states themselves, before reiterating “the world has changed”, and that negotiators are trying to find “the best deal for the European Union”.
‘Great deal more’ should be done – SF
Donnchadh O’Laoghaire criticised the policies of “successive governments” (File image)
Sinn Féin TD, Donnchadh O’Laoghaire, has called on the Government to invest in and support the Irish economy amid uncertainty caused by tariffs.
Speaking on RTÉ’s This Week programme, Deputy O’Laoghaire said that a “great deal more” should be done to “insulate” the economy and Irish jobs.
“I do think the policies of successive governments have created certain vulnerabilities in the Irish economy,” he said.
“The Irish Government needs to be pursuing insurance in terms of the key industries that are at stake.”
He described this as “crucial” but added that Ireland has become “far too reliant” on a small number of markets.
“That needs to be addressed in terms of diversification, even if you look at the recent trade missions over the last couple of years, far too many of them focused on the English-speaking world – that needs to change.”
Deputy O’Laoghaire said that progress made by the all-Ireland economy should not be undermined by the potential for a differential North and South tariff.
He also said that there should be investment in supports for the businesses most affected by tariffs, and in infrastructure.
“Most of all, infrastructure, because I think that is one of the key vulnerabilities,”
“We’ve seen job announcements in recent days that have been cancelled because of the fact that (there is) poor infrastructure in terms of energy, but obviously the issues in terms of infrastructure and housing and health as well haven’t been addressed by the NDP announcement.”
Deputy O’Laoghaire said that he does not accept the Government using tariffs as a reason for “U-turns” on commitments given during the election.
“The modelling that is there suggests that even with the with the existence of tariffs, 10%, 15%, the Irish economy will continue to grow,”
“There seems to be this implied message that the cost-of-living crisis is over people, I don’t accept that for one second… people are still under huge pressure and the budget does need to ensure that people in the here and now that requires distance get that assistance.”
