Martin: Pharmaceutical sector must be part of trade negotiations

Taoiseach Micheál Martin said: 'It is important that we don't end up in a situation where undue harm would be caused to people or indeed to the world economy.' Picture: Brian Lawless/PA

Pharmaceutical and semiconductor manufacturing must form part of EU-US talks on trade, Taoiseach Micheál Martin has said.

His comments come as it was confirmed Ireland is the second biggest pharma exporter in the EU, with exports reaching a record €313.4bn last year.

These exports were primarily bound for the US, with 38.2% travelling across the Atlantic.

It also comes as Donald Trump last night name-checked Ireland when he said tariffs on pharmaceuticals could be imposed in the not too distant future.

"We don't make our own drugs, our own pharmaceuticals. The drugs companies are in Ireland, they are in lots of other places, China. All I have to do is impose a tariff."

Given the high level of exports to the US, the possibility of tariffs on pharmaceuticals could have a significant impact on companies operating here.

Mr Martin said:  “There is an opportunity now for negotiation and I would hope, in that opportunity, that the sectoral issues in pharma and also in semiconductors would form part of that (the EU-US talks).

"It is the largest trading relationship in the world, hugely impactful and it is important that we don't end up in a situation where undue harm would be caused to people or indeed to the world economy or those specifics sectors.

Medicine is key to life and tariffs will increase the costs and that's the key point, both in America and around the world.

Meanwhile, the European Union formally confirmed that its 90-day pause on retaliatory tariffs against the US would come into effect today, while trade commissioner Maros Sefcovic is in Washington for talks with US commerce secretary Howard Lutnick.

Speaking at a meeting of EU foreign leaders, Tánaiste Simon Harris said it would be “foolish” for Ireland not to prepare for some level of tariffs to remain in place, despite negotiations due to take place between the EU and US.

The Tánaiste said Ireland and the EU are “open for business” and prepared to purchase more US goods.

However, he warned the bloc is prepared to retaliate in order to protect its economy and jobs.

Meanwhile, enterprise minister Peter Burke and Mr Harris will jointly bring a plan to Cabinet to make Ireland more competitive amid global economic uncertainty.

Mr Burke will aim to publish a competitiveness strategy within the next 12 weeks, ahead of the Dáil's summer recess, in a bid to ensure that any tax or budgetary changes contained in the plan will be represented in October's Budget.

These will include expediting work on implementing CETA, the EU-Canadian free trade deal, with the Tánaiste due to bring proposals to government later this month.

Cabinet will also be told of a plan which could see trade commissions with China, India and the UAE prioritised.