NI cannot become ‘collateral’ in EU-US trade war, says Little-Pengelly
The deputy First Minister said she had raised ‘the dangers’ for Northern Ireland in any EU-US tariff dispute.
It is important that Northern Ireland does not become “collateral damage” in any trade war between the US and EU, the deputy First Minister said.
Emma Little-Pengelly said the region was in “a tricky situation” over trade, that she intended to highlight with ambassadors.
Post-Brexit rules, set out in the Windsor Framework, aligns Northern Ireland trade processes with EU customs arrangements, while remaining part of the UK’s customs union.
US President Donald Trump has been threatening to impose tariffs on the EU to balance what he has called a “massive” trade deficit with the bloc.
After criticising the EU on Wednesday for not buying more cars from the US, on Thursday he signalled he would impose a 200% tariff on EU alcoholic drinks.
It came as Northern Ireland Secretary Hilary Benn said “escalating tariff retaliation is not good for business”.
Asked by the PA news agency about the threat of tariffs and how it could affect Northern Ireland, Ms Little-Pengelly said: “The key issue for me is that we don’t become that collateral damage, and we need do everything that we can to influence that.
“If we are caught up in this, in truth that it is going to be, in my view, the collateral. It is not going to be the aim of this.
“So, of course, my role here is to make sure I’m speaking up for Northern Ireland and trying to ensure as many people as possible are aware of the dangers of this.”
Ms Little-Pengelly, speaking at the NI Bureau in Washington DC in the US on Thursday, also said Northern Ireland cannot be left behind in any trade deal with the US.
“A trade deal with the US would be and would have, as an aspect of that, some form of tariff reduction. So, of course it’s important as well that Northern Ireland can benefit from that.”
She said it had been repeatedly raised with UK governments and prime ministers that Northern Ireland needed to benefit from future trade deals.
“There are ways to do this. This is not just a binary black-and-white situation, where there is either tariffs in this area, or there’s not.
“There’s always these sort of conditions and carve-outs around all of those. But we need the people in the room to be aware of the issue to make sure that that happens for Northern Ireland.”
Speaking to the PA news agency, Mr Benn said that the UK Government is preparing for tariffs and is in the process of negotiating an economic agreement with the US.
Mr Benn said there was a “unique opportunity” for US companies in Northern Ireland given they are granted access to the UK and EU markets.
Pressed on whether that access could outweigh the protectionist approach taken by the Trump administration, he said: “The announcement of the steel and aluminium tariffs by the American administration is, of course, disappointing.
“Northern Ireland will be affected by those in exactly the same way as the rest of the United Kingdom, so it’s not particular. It’s when Europe decides to retaliate that there will be an impact.
“But we’re prepared for that, because there is already in place the tariff reimbursement scheme.”
Asked if Northern Ireland could be left behind in a UK-US deal due to the Windsor Framework, he said: “I don’t think Northern Ireland is going to be left behind but the Windsor Framework remains regardless of the outcome of that, because that is a product of the decision the British people took to leave the European Union.”
Mr Benn said he was using the St Patrick’s Day events in the US to pitch the “extraordinary opportunities” for American businesses to invest in Northern Ireland.
Asked about an unrealised boon in US investment in Northern Ireland following the restoration of Stormont, Mr Benn said there were already a lot of US companies investing in the region and added: “The single most important contribution that the Northern Ireland Executive can make to that stability is that they carry on with their work.
“It is a year – they made a really good start – but investors want to know that that political stability is going to be there for the long term.”
Ms Little-Pengelly the trip to Washington DC for St Patrick’s Day has been “an incredibly fruitful one”.
“We’ve had a number of very significant conversations, not just, of course, directly with the president, but of course engagement with the new UK ambassador to the US, Lord Peter Mandelson, I’ve now spoken to him a number of times,” she said at the NI Bureau breakfast in Washington DC.
The DUP MLA said she has also had “a number of conversations” with the two US nominees to become ambassadors to the UK and Ireland.
“These are really key conversations because, of course, these are the people, the policymakers, the influencers, that are key to speak up for Northern Ireland, particularly when dealing with tricky issues.”
Asked whether the US engagements had been limited because of the absence of First Minister Michelle O’Neill as part of Sinn Fein’s White House boycott, Ms Little-Pengelly said: “I think it shows a confidence in our Executive.
“I think it demonstrates that the Executive is actually working well together.
“I believe I’m a very strong voice for Northern Ireland. I’m not shy about putting forward our case and making sure that we do get into those rooms, and we are saying everything that is fantastic about our wonderful place we call home.”
During an address to the Northern Ireland event in Washington DC, Ms Little-Pengelly jokingly compared herself and Ms O’Neill to the Gallagher brothers.
