Keynote Address by Taoiseach Micheál Martin at IIEA/European Commission Trade Conference ‘International trade – the challenges ahead’ 3 October 2025

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Maidin mhaith.

Go raibh maith agat, Peter (Power), as an intreoir.

Fáilte an-mhór roimh an gCoimisinéir Maroš Šefčovič – duine a measaimid gur cara maith de chuid na hÉireann é – agus fáilte freisin roimh gach painéalaí agus modhnóir ag an imeacht inniu.

Ba mhaith liom buíochas a ghabháil lenár lucht féachana, iad sin atá i láthair i bpearsa agus ar líne araon, as dul i bpáirt linn chun an topaic ríthábhachtach seo a phlé.

Níl aon amhras ann ach gur tréimhse an-dúshlánach é seo ar fud an domhain.

Ó thaobh cúrsaí eacnamaíocha, sóisialta, cultúrtha agus polaitiúla de – is ag dul i léig a bhíonn rudaí a rabhamar cinnte fúthu le fada an lá roimhe seo.

Tá cuid mhór rioscaí soiléire ag baint le dúshláin na linne seo – dár ngeilleagar, dár slándáil, dár sochaí agus dár stíl mhaireachtála féin.

Good morning.

Thank you, Peter (Power), for the introduction.

A very warm welcome to Commissioner Šefčovič, Maroš – we consider you a good friend here in Ireland – and to all of today’s panellists and moderators.

And to our audience, both here in person and on online, I would like to thank you all for joining us for a discussion of this most important topic.

By any definition, these are times of profound challenge globally.

Economically, socially, culturally, politically – long held certainties are disappearing. The challenges of this moment have many clear risks – for our economy, for our security, for our society and for our very way of life.

But I remain fundamentally an optimist.

To quote Seamus Heaney:

“Hope is not optimism, which expects things to turn out well, but something rooted in the conviction that there is good worth working for.”

I believe that we need to apply ourselves in working for that good, based on certain fundamental principles that I believe remain true – and indeed hold even greater truth – in times of difficulty.

We are witnessing an amplification of geopolitical and trade risks as moves are made towards more protectionist and divisive policies.

As a small open economy, we are particularly vulnerable to these external developments.

Trade and our trading relations with partners around the world is at the core of the Irish economic model.

It is at the core of how we see ourselves in the world.

Ireland has supported and benefitted from a world order in which trade has become more open and globalised over recent decades.

The changing world and international trading environment brings both new challenges and opportunities for us.

Our future success will depend on our ability to react and adapt to these changing realities. We must be agile, and we must be proactive in controlling what we can control.

To protect and promote Irish businesses, workers and consumers while continuing to look outward with confidence.

Europe, and our membership of the EU, remain the foundations underpinning all of this.

For Ireland, there is no progress possible without close, rules-based and active cooperation with our partners in the European Union.

Our shared values, opportunities and ambitions are fundamental to our prosperity.

We are stronger together. EU unity must remain the touchstone of everything we are trying to achieve and to protect.

Global Trade

Since assuming office earlier this year, the new US Administration brought with it a tectonic shift in trade policy.

We were forewarned of the so-called ‘Liberation Day’ tariff announcement in April, but it nevertheless sent a shockwave through the global trading landscape.

It set the agenda for what has become a reset, not only in the transatlantic trade and investment relationship but the global trade order.

The US Section 232 investigations into pharmaceutical, semiconductors and other key sectors remind us that trade policy can be deployed to serve broader strategic aims.

Ireland’s position since has been and remains clear and consistent.

Tariffs are bad. They are bad for businesses and bad for consumers.

They deliver higher prices and higher interest rates.

They distort economies and inhibit innovation. And of course, they undermine successful multi-lateral cooperation.

The EU-US trade relationship represents the largest economic relationship in the world.

For the US, a positive EU-US trading relationship benefits their businesses, their consumers and their economy.

For Ireland, the economic relationship with the US matters deeply.

Our economy is uniquely intertwined with the US as our main export market.

Uncertainty in the transatlantic relationship translates directly into uncertainty for Irish businesses.

That is why we have strongly supported the measured and strategic EU response – led by President von der Leyen and Commissioner Šefčovic.

The EU has been united and this has been our strength.

Given our outsize interest and stakes in the negotiations, we have found that working closely with EU partners has amplified, not isolated our voice.

We have engaged and will continue to engage with our partners in good faith, work to de-escalate tensions where they arise, and ensure that our key strategic interests are protected.

Maros, in navigating this new trading reality you continue to have Ireland’s full support.

Let’s be honest, and let’s not sugar coat it, the EU-US deal leaves us in a worse position than we were in at the start of the year, but let us recall that a lot has changed since then.

Following the political agreement between President von der Leyen and President Trump, August’s Joint Statement on trade between the EU and the US does represent progress, in that it provides a degree of stability and certainty for Irish exporters.

The confirmation of a single, all-inclusive, 15% tariff on EU goods avoids a harmful tariff-escalation across the Atlantic and ensures continued access to American markets.

Crucially, it provides assurance that this tariff rate will extend to pharmaceuticals and semiconductors, as well as further carve outs for the aircraft and automobile sector.

The value of the framework agreement was demonstrated most recently following President Trump’s announcement of 100% tariffs on patented pharmaceuticals.

The EU has been clear that it is our understanding that, because of our agreement, this new rate will not apply to EU pharma products.

The all-inclusive 15% tariff ceiling for EU exports represents an insurance policy that no higher tariffs will emerge for European economic operators.

The EU is the only trade partner to achieve this outcome with the US.

So, while the framework agreement is by no means perfect, it is much better than what many other countries have received.

A lot of work remains to be done as we move to a new phase of negotiations and a new era in the transatlantic trade and investment relationship.

We are working intensively with the Commission to seek to achieve further exemptions of the 15% rate, including but not limited to med-tech products and spirits.

We fully appreciate that there has been disappointment and deep concern in these sectors. I hope this will be advanced as quickly as possible.

I know that there are also concerns, which I share, about the implications for the all-island economy.

The new tariffs announced by the US do not affect the UK in the same manner as they are subject to the baseline 10 per cent tariff.

This will have an impact on Northern Ireland and the government is conscious of this.

We are working through these issues, and we will continue close contact with the Northern Ireland Executive.

There may be specific issues for the agrifood sector, not least due to the integrated supply chains North and South in this industry, and the Customs ‘rules of origin’ which define the origin of a product for tariff purposes.

We learned a lot about this in the Brexit period and so understand that supply chains on this island are deeply connected and that any change to current integrated arrangement would require huge investment.

We are very aware of this, and we will continue to highlight the particular situation of Northern Ireland and, more broadly, the all-island economy in all our discussions with interlocutors, including the US and the European Commission.

And I know that Maros is keenly aware of this.

We are very fortunate that he has a deep understanding of the situation on this island having skilfully navigated negotiations with the UK in the last number of years.

He is a good friend to Ireland, and I am deeply grateful to him for all he has done and continues to do in dealing with the fallout of Brexit while pursuing a strengthened EU-UK relationship.

I also know that Maros is one of the most enthusiastic advocates for an ambitious EU trade agenda. Ireland fully shares this ambition.

We believe trade not only brings economic benefits, but it also helps lift people and countries out of poverty, and it contributes to a more stable and predictable world.

The effectiveness and fairness of international trade rely heavily on a rules-based multilateral system, with the World Trade Organization at its core.

Its role is particularly vital in ensuring that trade remains open and inclusive, especially during times of global uncertainty.

And we should recall that the overwhelming volume of global trade continues to be conducted within the WTO framework of rules. We must therefore continue to work with our partners to support it and to reform it to ensure it can survive the challenges of our time.

Retreating behind defensive barriers may appear attractive on the face of it, but it is not a ‘win-lose’ proposition. Ultimately, everyone loses, and the poorest lose most of all.

While the challenge we and our European partners now face is not to be underestimated, we are taking this on from a position of strength.

In Ireland, our domestic economy continues to grow and shows resilience.

Economic growth and domestic demand continue to be positive, and our trade balance, driven by strong external trade, has been stable. Exchequer tax receipts remain robust resulting in a strong fiscal position.

We are continuing to see an economy operating at full employment with record levels of labour market participation.

Real wages are on the rise, while the inflation rate has stabilised.

This strong domestic position has allowed us to carefully manage our resources and put aside reserves for the future when times are more challenging.

Despite this, we cannot take our economic success for granted.

Next week we will be delivering Budget 2026, which will promote a balanced and sustainable fiscal approach, providing the necessary scope to invest in our economy without jeopardising the stability of our public finances over the medium-term.

For our future prospects, to maintain a strong, competitive economy at full employment, we need to prioritise productive investment in infrastructure – housing, energy, water and transport – as well as research and skills.

Through the revised National Development Plan, published in July, we will allocate over €275 billion to critical infrastructure which will transform the country for this generation and future generations to come.

We are committed to drawing on our past insights and marshalling our current strength and resources to prepare ourselves for what lies ahead.

The challenges and opportunities we are presented with today, if carefully managed, will continue to underpin our success in the future – delivering a robust and resilient economy, as a foundation for a fair and prosperous Ireland.

We are determined to build on and support our core strengths.

This means continuing to provide a stable and competitive business environment that is pro-enterprise, to focus on and lean into our membership of the European Union, to support free trade and international agreements, and to invest in critical skills.

Ireland and Irish businesses need to remain competitive and productive through innovative solutions, digitalisation, and development of new talent.

As a government, we are firmly committed to backing our people, and our businesses, indigenous and international, so they can continue to grow and flourish despite serious head winds.

Our recently published Action Plan on Competitiveness and Productivity manifests this commitment and acknowledges the urgency of this task.

Informed by the Government’s Competitiveness Summit and the analysis of Ireland’s National Competitiveness and Productivity Council, the Plan sets out what we can do – across the whole of Government – to help enterprise adapt and remain resilient in difficult times.

It is focused on addressing challenges within our domestic sphere of influence - on “controlling the controllables”.

It contains a number of priority actions which will take precedence and are particularly important for transforming Ireland’s competitiveness and productivity.

Emphasis has been placed on issues around international trade, engagement with the EU Single Market and Market Diversification, which are particularly relevant in the current climate, in addition to legal and regulatory reform, cutting “red tape” for businesses and enabling regional growth.

Importantly, it also compliments our Action Plan on Market Diversification, published in August.

As a small global economy, Ireland has greatly benefited from the returns of international trade and the EU Single Market, as well as strong international relationships.

However, it is also this openness that can leave us exposed during challenging times.

The Government acknowledges this and we are committed to making the Irish economy more resilient while also expanding our diplomatic relationships in key regions – upholding Ireland as a trusted partner and destination for tourism, investment, and trade.

This will also facilitate Irish business to scale up and succeed in new, as well as already existing markets, particularly providing support and resources for SMEs.

The Action Plan will also enhance domestic readiness and will ensure that our national policies, infrastructure, and regulatory environment support international cooperation, innovation, and competitiveness.

In this sense, the Plan will work in tandem with the Action Plan on Competitiveness and Productivity – in a whole-of-Government response to the increasingly challenging economic climate.

It is also acknowledged at EU level that we need to act with urgency and agility to build on our market strengths and to diversify our markets.

CETA is an important part of Ireland’s diversification story, particularly post-Brexit and in the context of US tariff volatility.

I spoke to Prime Minister Carney only last week during my visit to Ottawa about the benefits for our economies of further strengthening our trading relationship.

We discussed the excellent report ‘Beyond Barriers’ produced by our Embassy team in Canada, which does a deep dive on the bilateral economic relationship and which is an exercise I’d like to see repeated in other key markets.

The fact is that Canada–Ireland trade has nearly doubled since the provisional application of CETA in 2017, reaching US$9.6 billion in 2023.

Irish goods exports to Canada have surged by 160 per cent since 2016 and Canada’s exports to Ireland have grown by 164 per cent. This is the benefit of open and fair trade, bringing growth and jobs to both our economies.

The is why the Government is committed to ratifying CETA and we will soon bring forward a Bill to make amendments to existing legislation as an essential enabling condition for the ratification of CETA.

The Bill, once passed, will also facilitate the ratification of other similar Free Trade Agreements with third countries that include investment protection provisions, including Singapore, Vietnam, Chile and Mexico.

I want to make it very clear that the government I lead will always be pro-trade. We will work to deepen established connections and to build new ones.

Where new trade agreements are available and are balanced then it is in Ireland’s interest to ratify them as quickly as possible.

Ensuring balance is key here. EU trade agreements must defend our most vulnerable sectors and ensure that our farmers’ livelihoods not be undermined through weak or ineffective environmental standards in other countries.

Following the Commission’s presentation of its final proposals on the EU-Mercosur agreement, the Irish Government is now carefully assessing the package in its entirety to understand if our well-known concerns with the agreement have been adequately addressed.

We look forward to further progress on other EU bilateral trade agreements.

Just last week, on 23 September, negotiations on the EU-Indonesia Comprehensive Economic Partnership Agreement were finalised.

We hope that the EU-India Free Trade Agreement negotiations will be finalised by the end of the year, the largest of their kind anywhere in the world.

Conclusion

A Chairde,

Tá rathúnas na hÉireann le 50 bliain anuas bunaithe go mór ar ár mballraíocht den Aontas Eorpach agus ar thiomantas láidir don trádáil idirnáisiúnta agus do mhargaí oscailte.

An rochtain atá againn ar an Margadh Aonair, mar aon leis an líonra rochtana margaidh a baineadh amach trí Chomhaontuithe Saorthrádála an Aontais, tá rannchuidiú ollmhór déanta acu lenár bhforbairt gheilleagrach agus lenár n-athléimneacht gheilleagrach sa lá atá inniu ann.

Ireland’s prosperity over the last 50 years has been built on the foundations of our EU membership, and a strong commitment to international trade and open markets.

Access to the Single Market, coupled with the network of market access achieved with EU Free Trade Agreements, have contributed hugely to our economic development and the economic resilience that we enjoy today.

However, we cannot afford to be complacent.

We must work to address the current trade challenges, working with Commissioner Šefčovič, the European Commission and other Member States.

The changing landscape of international trade means that our response to these challenges will shape our economies and societies for many years to come.

Ireland is on the side of openness, fairness; we are committed to the international rules-based order, and effective multilateralism.

We are an advocate of finding solutions through negotiations that can create win-win outcomes to the benefit of all our citizens.

Despite the uncertainties we face, this is not just false hope or misplaced optimism but a sound and strong example of something good worth working for.

Thank you.

ENDS