Exporters crunching their numbers to see whether the recently imposed 15 per cent tariff on all goods entering the United States from the European Union will be glad to see publication of the Government Action Plan on Market Diversification.
But they’ll also be aware that Irish governments are top-class operators when it comes to plans, but are not quite in the same league when it comes to implementation.
Ask anyone who’s been locked out of the housing market for the past decade or more or the children and medics looking forward to getting into the new children’s hospital.
This is the Government’s first bite at helping business adjust to the new realities of world trade – and trying to protect the people they employ. Enterprise Ireland estimates that more than half of its client companies exporting to the US – 450 out of 950 – will be significantly affected by the regime Donald Trump’s agency has put in place.
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The US is our largest trading partner, accounting for 30 per cent of all Irish trade and 43 per cent of imports. It is a critical outlet for our pharma, food and drink, and tech sectors.
Despite all Ireland Inc’s success in recent years, when you consider trade in total – both goods and services – we still have a €113 billion trade deficit in this transatlantic relationship.
And that will continue. In the words of the plan: “Trade diversification should be seen as Ireland entering a new phase of trade development rather than a move away from the US market and the opportunities it offers, with the focus being on risk reduction through trade growth beyond our traditional markets.”
If that sounds like trying to have your cake and eating it, it is because that is precisely what it is doing. Even now, everyone is treading carefully not to upset the US administration regardless of the humiliations that might entail.
Business leaders are, of necessity, more focused on the practical. What they want to know is can they make the figures stack up on their business in the US while the Government’s plan looks to open new markets.
While everyone understands that tariffs hit consumers, the reality is that businesses, too, pay a price – and not just in reduced demand. In an effort to stop consumers being priced out of purchases, or stores simply dropping products from listings, exporters will inevitably share the pain.
Now we have a plan and it promises to deliver on more than half of its 108 action points within 16 months. That remains to be seen. Of possibly greater concern for those 450 business is that action on most of the rest is “ongoing”, which is always worryingly open-ended.
