Dáil Éireann Debate, Wednesday - 30 April 2025
60. Deputy Naoise Ó Cearúil asked the Minister for Enterprise, Trade and Employment to outline the strategies being pursued to protect and strengthen Ireland's competitiveness, in light of escalating U.S. tariffs. [20972/25]
View answerIn 2024, Ireland was ranked as the 4th most competitive country in the World in the IMD World Competitiveness Rankings. Indeed, Ireland currently holds a strong competitive position globally, and this performance is underpinned by several key factors, including a highly skilled workforce, strong economic growth, and success in attracting foreign direct investment in high-value sectors. Ireland has also enjoyed exceptionally strong economic performance in recent years. Employment is at record levels. However, the international context is rapidly changing, and we recognise that many businesses, whether indigenous or FDI, are facing increased challenges, including on the cost of doing business.
The National Competitiveness and Productivity Council (NCPC) has outlined the challenges to Ireland’s competitiveness and productivity over the medium term and the policy responses required to meet them in its latest annual report – Ireland’s Competitiveness Challenge 2024. In an evolving geopolitical landscape, the focus must be placed on addressing those challenges that are within our sphere of influence.
The introduction of tariffs by the US administration on imports from the EU presents a significant economic challenge for Ireland. Ireland remains committed to the principles of free and open trade, which have underpinned our economic success. Open trade brings economic opportunities, creates well-paid jobs and fosters innovation. It also builds economic resilience within a strong rules-based international trading system.
The Government appreciates that this is a worrying time for many businesses, particularly those with goods at sea, with the ultimate impact of the US decision to impose tariffs on imports from the EU remaining unclear.
In recognition of these challenges facing Ireland, the Government has accelerated the timeline for the delivery of a new whole of Government Action Plan for Competitiveness and Productivity. A draft of the Plan will be considered by Ministers at a Competitiveness Summit this July and published as soon as possible thereafter. This plan will cover industrial policy, reducing the cost and regulatory burden on business, investing in infrastructure, digital regulation and reform, energy reform, international trade and research and development, and innovation.
Over the coming weeks, the NCPC will finalise its Ireland’s Competitiveness Challenge 2025 report. This work will feed into the development of the Action Plan. The Action Plan will be evidence based, and will be underpinned by consultations by my Department with other Government Departments and stakeholders, as well as by research and analysis. These consultations are already underway. Given the heightened level of international uncertainty, most if not all of which is outside of our control, the overarching objective of the Action Plan will be to focus on matters within our control by way of policy changes which can make the Irish economy more competitive and resilient to economic shocks.
