SIMON Harris has played down the prospect of a potential trade war between the EU and the US as the Tanaiste claimed: “We can do business with Trump.”
The new Foreign Affairs Minister has also revealed his plan to set up a new talking shop with American companies based in Ireland to try convince them to keep their business here.
An economic report from Goodbody Stockbrokers today warned that Donald Trump’s economic policies pose the “biggest vulnerability” to the Irish economy.
President Trump has threatened to impose tariffs on EU goods travelling to the US with fears this could encourage American companies based in Ireland to start making their products in the States.
Officials in the Department of Finance fear Donald Trump’s policies will erode Ireland’s bumper corporation tax returns with US multinationals accounting for 83 per cent of our corporation tax.
However, Tanaiste Simon Harris today played down the threat of President Trump’s policies as he believes Ireland and the EU can do business with the new US administration.
Speaking ahead of meeting of Foreign Affairs Ministers in Brussels, the Tanaiste said the EU needs to focus on what it is doing to improve trade and investment instead of just focussing on the US.
He said: “It means engaging with President Trump in a way that I think he relates to about the benefits to the United States of America of doing business with the European Union and members states of the EU.
“I would respectfully point out when you look at trade in the round and when you include the issue of services it’s a very different or less stark picture to perhaps how it is somewhat presented in the US.
“So we can do business with the Trump administration. My country has done business with every US administration.
“There will be challenges. There will absolutely be challenges but we’ve got to control what we can control.”
The Foreign Affairs and Trade Minister revealed that he will bring a proposal to Cabinet in the coming weeks to set up a new Trade Consultative Forum.
This body will bring together government officials with businesses – including reps from American firms based here – to enhance the argument of why companies should continue to invest in Ireland.
Harris said: “I want to get people around the table in the broadest sense of the words ‘Team Ireland’ whether you are the government of Ireland, whether you’re investing in Ireland or whether you’re people looking to seek investment in Ireland – I think it’s really important we all work together on trade.
“It’s really important we also listen carefully to what people considering investing in Ireland are saying to us and they are saying we need to see a greater investment in infrastructure in things like water, energy and housing.”
FUND FEARS
Meanwhile, there are concerns that Donald Trump will withdraw $4 million in funding from the US for a mission which helps set up cross community projects between Northern Ireland and the south.
The International Fund for Ireland was set up in 1986 to deliver peace and reconciliation projects and receives payments from the EU, the US, Australia, New Zealand and Canada.
Trump has announced plans to freeze and review all foreign assistance programmes as he believes the US is paying out too much money.
