Harmful effect for EU of trade policy uncertainty

WITH the looming threat of additional US tariffs over Greenland and EU discussions on retaliatory actions, Chambers Ireland has said that new analysis underlines and quantifies the harmful effect of trade policy uncertainty on investment throughout the European Union.

The latest report by Chambers Ireland and Eurochambres – the association of European chambers of commerce – is based on data from 24 European countries, spanning the past 25 years.

The results show the impact of trade policy uncertainty, negatively effect a country like Ireland which is export-orientated.

Speaking at the launch of the report, Chambers Ireland Chief Executive Ian Talbot said that the turbulent international situation has specific and direct economic consequences for Ireland.

“As a small, export oriented economy, we cannot ignore the real threat that trade wars and rising protectionism pose to investment in Ireland. Without investment, we cannot hope for the growth, job creation and competitiveness that businesses need to prosper and maintain their socio-economic model.

Recent global trade developments clearly illustrate these effects. While the signing of the EU-Mercosur agreement last weekend raised hopes of more predictable international trading conditions, benefits will now not be realised until the Agreement undergoes referral to the European Court of Justice. Renewed tensions with the United States are also once again undermining business confidence.

At a time when uncertainty with one of our biggest markets looks set to continue, opposition to Free Trade Agreements like Mercosur must be reviewed by Government. We urge all parties to support efforts to widen our trade relationships to help secure our future.”