Targeted goods such as Irish cream liqueur and butter, as well as 1,400 other EU products such as wine and cheese affected by the 25% tariffs recently imposed by the US government, was the topic of a recent debate held by the European Committee of the Regions.
The imposing tariffs believed to be worth €6.9 billion discussed by the delegates from all 28 member states, are those that the US has placed on affected sectors in response to EU's aid to Airbus.
The European Committee of the Regions said that the basis for the debate position paper warns that the imposition of tariffs, which were first introduced on the 18 October this year, may lead to an escalation of tax measures that will harm other productive sectors of both the US and the EU which was presented by the Spanish delegation.
Numerous regions support the Spanish position paper, which urges the EU to compensate affected businesses urgently, to reach a fruitful settlement as to remedy the current situation and to plan mitigation measures for sectors and products that could be affected by upcoming EU-US litigation outcomes from the World Trade Organisation (WTO), the group outlined in a statement.
Michael Murphy, Member of Tipperary County Council, Head of the Irish Delegation to the European Committee of the Regions, said: "These sanctions will result in a lose-lose situation for regions in both the EU and the US."
"Trade disputes destabilise productive ecosystems and their impacts are first and foremost felt at the local levels."
Targeted Irish Goods
Ireland recorded goods exports to the US of €39.4 billion in 2018, the group highlighted.
The total value of Irish exports in 2018 subject to US measures is valued at €366 million which at a rate of 25% would attract €91.6 million in additional tariffs.
Exports from Irish regions of Irish cream liqueur and butter accounts for 44% and 95% respectively, of the total value of tariffs on these targeted goods.
"Similarly, to Spain, Irish regions are carrying a significant burden of tariffs imposed by the US," Murphy added.
"It’s important that emergency support measures are put in place to mitigate these losses whilst the EU work on a negotiated solution to this dispute."
© 2019 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. Click subscribe to sign up for the Checkout print edition.