Leitrim senator asks for clarity on trade deal between the European Union and United States

Sligo-Leitrim-South Donegal Labour Party Senator, Nessa Cosgrove has called upon the Irish Government to clarify details of the trade deal announced between the European Union and United States yesterday.

Senator Cosgrove said: "The level of detail on offer on this deal so far leaves a lot to be sceptical about and not much to be certain of. Although being heralded as a deal yesterday, just as we have seen with the US’s agreements with the UK, Vietnam and other countries, this is not in fact a deal, it is just the bare bones of a deal, the heads of an agreement, which President Trump may choose to walk away from or alter at a whim. Even during his first Presidency, we saw a deal with Canada revisited as soon as it was agreed. No sooner are deals done with President Trump than he moves the goalposts. He thrives on uncertainty and attention.

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She continued: "Even if we accept that this 15% tariff baseline has been agreed, and will be adhered to by the US, there is no detail on what level of tariffs will be applied in specific sectors. Notably the pharmaceutical industry has not yet been addressed at all, and we have been told that some medical devices may be subject to a different level of tariff. Which medical devices and what level are they likely to be exposed to? The uncertainty on pharma is equally unclear."

She said that despite suggestions that certain sectors such as Agrifood and Whisky will be exempt, no confirmation on this was given.

She commented: "With distilleries in Sligo, Leitrim and Donegal, staffed by skilled workers we need to know, is this to come about? Uncertainty kills jobs. It kills current jobs and it kills future jobs.”

Moving on to what the Government could do to address the uncertainty, the Labour Party spokesperson on Worker’s Rights added:

“While we can not control the erratic behaviour of the current US Government, we can control our own response. Until we get absolute certainty, the Government must introduce a wage-subsidy scheme. Not to support large-profitable multi-national employers, but small indigenous Irish employers who find themselves struggling to pay wages due to falling orders. It would be similar to that already introduced in Germany, and to the Employee Wage Subsidy Scheme we became familiar with during Covid. This is vital to protect jobs, avoid lay-offs and maintain the relationships between employer and employee.

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So far the Government have said no to this. That is a mistake. Introducing a Short-time working scheme will mean that the average factory worker Sligo or Carrick-on-Shannon will know that they will be able to continue to pay the mortgage during the months ahead.

We are the most exposed country in the EU to the US market, with over 25% of our goods currently crossing the Atlantic, more if we include services.

In the long-term Government must support the transition of our businesses to become Euro-Centric rather than America-Centric. Our best future lies with our European partners, not with an unreliable, erratic American regime. Positive noise has come out of Government in recent days on a possible Research and Development Grant to help firms diversify. Let’s see the details.

It is interesting to note that both IBEC and the Unions are calling for the same thing, the same protection for workers. When Employers and Trade Unions are singing from the same hymn sheet, the Government would be foolish to ignore these voices.”