Irish Prime Minister Says His Country Opposes Carbon Border Adjustment Use for Protectionism
Ireland's Prime Minister Micheál Martin told a U.S. Chamber of Commerce audience that as the U.S. is looking for trusted partners to make sure its supply chains are resilient, it should look to Ireland. He noted that his country was the fifth-largest supplier of coronavirus-related goods.
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Martin linked easing tensions over tariffs with future cooperation on climate provisions that could affect trade, and downplayed the likelihood that digital services taxes could raise tensions once more. “We are working to resolve trade disputes that have stifled growth in recent years,” Martin said during the March 16 webinar. He said he was heartened that the European Union and U.S. agreed to suspend for four months tariffs that are part of the Boeing-Airbus dispute. “This is an encouraging sign of a signal of intent” to resolve the matter, he said.
Martin told the Chamber that when he talks to President Joe Biden on March 17, he will update him on Brexit, tell him he appreciates his commitment to multilateralism, and will talk about how countries can emerge from the recession caused by the COVID-19 pandemic. Martin told Myron Brilliant, who leads the international affairs division at the Chamber, that although Brexit did not create tariffs or quotas, the fact that the United Kingdom is no longer part of the EU “has created significant bureaucracy” when Britain trades with EU member states. He said there are mechanisms within the United Kingdom-EU agreement that can resolve the challenges, but he's concerned about unilateral decisions Britain has made.
Brilliant asked Martin if the EU plan for a carbon border adjustment would be used as a way to create trade barriers. “We’re very clear it cannot be used as a mechanism for protectionist urges,” Martin said. “I think in terms of climate, the U.S. and Europe will find common ground.”
He said the early decision to temporarily lift the Airbus tariffs gave European officials confidence, and will be the foundation for a stronger relationship.
Brilliant also asked about the possibility that European countries will impose digital services taxes, which the U.S. has said could be a reason to hike tariffs on European exports, since the U.S. government says those taxes are discriminatory. “Our sense is the momentum is heading back toward the OECD forum,” Martin said, referring to the Organization for Economic Cooperation and Development, which is trying to come up with a global approach to taxing multinational corporations.