Taoiseach Harris Raises Concerns Over Transatlantic Trade Risks And Seeks Talks with Trump

The more recent threat of a transatlantic trade shock has been recognised by Taoiseach Simon Harris after the success of Donald Trump in the US election. Harris described Trump as a “transactional” leader, confident that the incoming U.S. president would understand the importance of a two-way relationship between the U.S. and the European Union (EU), particularly in trade. 

Being an Irish politician and the country’s Taoiseach as well, Simon Harris realises well the economies of Ireland, the EU, and the United States. He stressed the importance for building a positive stance towards President Trump, who is a businessman by profession and should realise that the U.S. and EU trade relations are mutually beneficial.

These comments were made by Harris on his arrival at the European Political Community summit in Budapest where the forty-seven European nations including the 27 members EU community met to deliberate on key political and economical issues. 

There was also an address by the President of Ukraine Volodymyr Zelensky, addressing the war with Russia and the united vision of Europe for supporting Ukraine. Against this background, comments from Harris on trading relations with the US have attracted public debate.

Taoiseach Simon Harris on the Transatlantic Trade Relationship

Judging by Harris’s speech, at its core was the understanding that the probability of a transatlantic trade shock has risen. This feeling suits Ireland’s policy-makers, who traditionally have based their successful economic relations on the FDI from the USA.

The Taoiseach reiterated that the trade relation between the US and EU is not a one sided affair. Although many of the employment opportunities in Ireland were created by foreign investment and operation in the United States, today the Irish owned companies hire people all over the United States, meaning that the two economies are intertwined.

Harris observed, “While there are many jobs in Ireland as a result of U.S. foreign direct investment, there are also now Irish jobs from Irish-owned companies in every single state in the United States of America.” This statement also shows that Harris is endowed with a flexible mindset about the global trade environment. 

Regarding the dynamics of Ireland, the US and the EU, he said that Ireland, the US and the EU must adjust the nature of their relations to the new world situation, especially to the expected more a transactional foreign policy from Trump.

Harris further pointed out that going forward the Irish government is well protected and has ensured the economy by investing any budgetary surplus in sovereign wealth funds. This forward looking strategy serves to insulate Ireland from possible future economic shocks which could be due to either a transatlantic trade shock or European system shock.

Prospects for the Cooperation between EU and USA in Trump’s Presidency

Despite the usual challenges, Taoiseach Simon Harris looks forward to communicating with the next administration of the United States. He said: “It is now necessary to underline what action can President Trump take in the near future and what steps can he undertake against the various policies that he has announced.”

Harris said he wished to have serious talks with Trump to clarify what kind of future the EU and the US can expect in trade talks and what would be in both parties’ best interest.

It is, however, also important to recognise that Trump’s blunt, transactional approach to foreign policy might also lead to positive changes in the U.S.-EU relations. Altogether, Harris’ study reveals that trade is at the EU level, and countries all over Europe lure firms for one reason or the other and not necessarily because of tax regime. 

Ireland stands prominent for aggressively branding it as the ‘Multinational’s Paradise’ with guarantees of low taxes, skilled workforce and access to the EU markets. This aligns with the opinion of Harris who noted that the EU is an important economic ally of the U.S., therefore it was important for Trump to embrace Europe as a friend.

Harris also stated that, in addition to taxes and business opportunities, Ireland presents significant assets like people, creativity, and stability. He emphasised that Ireland is a strategic partner of the U.S. and the EU acting as a vital link that opens vast opportunities for American companies interested in accessing the European market.

Taoiseach Simon On Ireland’s Neutrality and Defence Expenses

During the prime time press conference with the EU leaders, Taoiseach Simon Harris was also questioned on the status of Ireland’s military non-alignment especially after Trump’s win and ongoing conflict in Ukraine. Harris stood his ground and had a wet dream where Ireland’s military policy is in no way negotiable. 

But he was quick to note that in today’s world, Ireland cannot afford to sit and watch threats evolve especially in the cyber security arena. He said, “Even if you’re militarily neutral, it doesn’t make you invulnerable to such risks.”

On their part, Taoiseach Simon Harris offered an assurance that he was not willing to pass for the use of Irish military forces for foreign deployment but admitted to the growing need for developing much more efficient defence strategies to meet current emerging threats. 

Harris said that it will be necessary for Ireland to more than double its defence budget to be ready for non-traditional threats such as cyber warfare exposing European countries as vulnerable.

As for the general state of affairs in European security, Harris stated that Europe has to keep backing up Ukraine. He said, “Europe has to stand with Ukraine for as long as it takes,” underscoring the EU’s collective responsibility to defend Ukrainian sovereignty against Russian aggression. 

Taoiseach Harris’s comments are in line with the Irish continued support for Ukraine regardless of the changes in the political regime that brought president Trump to power.

Reaction Of European Leaders On Trump’s Win

Many European leaders, including the President of the European Commission Ursula von der Leyen, agreed to work together with President Trump to enhance the transatlantic bond.

A former colleague of Trump, Von der Leyen stressed on pursuing these objectives collectively. Her positive outlook may differ to that of more cautious Taoiseach Simon Harris but both leaders appreciate the profound significance of the U.S.-EU partnership.

Again, some of the European countries’ leaders, like the Hungarian Prime Minister, Viktor Orbán, have been more pessimistic on the US policy on Ukraine. 

Orbán has a more friendly relation to Trump and he has raised doubt over the financial help which Europe offered to Ukraine; he also opposed the sanctions against Russia. It is evident from the varying positions seen across Europe that the process of coming up with a unified front to respond to the Trump presidency is not easy.

What’s In The Future For Ireland and the EU?

While Taoiseach Simon Harris and other leaders of EU member states are coming to the end of the meeting in Budapest, they will be facing some critical issues. From what Harris has said, it is apparent that Ireland will persist with pursuing its interests when working with the US and the EU. 

Whether it is a transatlantic trade shock, security, or an ongoing war in Ukraine, Prime Minister Simon Harris is keen to guarantee for Ireland that it would continue to remain a stable partner in Europe.

Even as the European Union comes under pressure from internal sources—pressures economic, political and security—Taoiseach Simon Harris will be holding the rudder for Ireland. His leadership will be crucial in keeping Ireland in the EU whilst cultivating its relationship during the shifting political climate brought by Trump.

Lastly, the policy area of transatlantic relations, European defence, and Ireland as a member of the EU will be determined by Taoiseach Simon Harris. 

While the world observes how Europe and the U.S. are going to fit into the new political reality with Trump at the helm, Ireland’s ability to act as a nexus between the two entities will continue to prove invaluable. 

The way chosen by the Taoiseach to address these challenges will define how Ireland will address its relations with America and EU and the rest of the world in the years to come.

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