CEO Update: Closing in on an EU-US trade deal?

Dear member,

We appear to be edging closer to a potential EU US trade agreement. From an Ibec perspective, we are acutely aware that while a possible 15% deal may bring an end to months of uncertainty for businesses, a 15% tariff would still represent a significant burden for many sectors. Our message to Government, as with the existing 10% tariff, is that the sectors most exposed will need support similar to the interventions seen during Covid and Brexit. We will continue to analyse the implications of any potential deal and keep members informed through planned briefings.

Since launching Our business ambition campaign, in anticipation of the Government’s Action Plan on Competitiveness and Productivity and in launching our Pre-Budget Submission last week, we have framed our position around the current volatile trading environment, focusing on what we can control. We welcomed the Government’s updated National Development Plan announced this week and its commitment to invest 200 billion euro in capital spending over the next decade. This aligns closely with the ambition set out in our recent Infrastructure ambition paper. Sustained investment is essential if we are to address the persistent infrastructure deficits highlighted by the IMF, which recently noted that Ireland lags 32 percent behind its peers.

Ibec strongly believes that infrastructure investment must be prioritised above other tax or spending measures in the years ahead. We need to move away from Ireland’s damaging pattern of famine or feast when it comes to investing in critical infrastructure. While we await further details on the projects to be included in the new plan, it is essential that they move through the system more efficiently by addressing fragmentation, improving coordination across Government, reducing decision timelines, streamlining procurement, strengthening planning, and prioritising public engagement and the common good. You can listen back to some initial reaction I gave on Newstalk's Hard Shoulder programme on Tuesday here

In Our innovation ambition paper, and long before that, we called for a multiannual funding programme to support research and innovation infrastructure. We therefore welcome this week’s announcement of a €4.55 billion investment in a new national research programme, including a successor to the Programme for Research in Third Level Institutions. This is a vital step toward closing gaps in Ireland’s outdated research infrastructure and modernising facilities that support innovation across our universities and research institutions.

As you may know, Ibec was invited last week to meet with the Joint Oireachtas Committee on Foreign Affairs and Trade to provide a business perspective on the Occupied Territories Bill, as part of the pre- legislative scrutiny process. Based on extensive consultation with our members, we outlined the potential economic and business impacts, covering goods and potentially services. While the Committee will ultimately weigh many factors in deciding how the Bill progresses, Ibec’s role was to present the implications for businesses should the legislation be passed.

Finally, with just under a year until the EU Pay Transparency Directive takes effect, we know that many businesses are already preparing. Our Employer Relations team continues to support members and advocate on your behalf to ensure businesses are equipped to manage what is one of the most significant pieces of employment legislation in decades. I recommend reading an opinion piece by Ibec’s Executive Director of Employer Relations in yesterday’s Irish Independent.

Regards,

Danny McCoy,