INITIAL ANALYSIS BY government of the US-UK trade deal indicates that the potential risk to the all-island economy from differential tariff rates has been averted for now, the Tánaiste will tell Cabinet today.

However, Simon Harris will tell Cabinet colleagues that the government’s initial analysis of the US-UK trade deal “thus far suggests a new reality that even after any potential trade deal [with the EU], countries may be operating in a tariff environment with the US which is far from the optimum outcome”. 

The Tánaiste will outline his belief that the US agreement with the UK last week “solidifies and formalises tariffs”. 

US President Donald Trump and Britain’s Prime Minister Keir Starmer announced the deal last week, with Starmer stating the main areas the trade deal focuses on are technology, car manufacturing and metal imports. He claimed it will create more employment and economic opportunities for the UK.

The deal opens up the British agricultural market to American farmers, a move which might impact agricultural trade between Ireland and the UK. Trump said there could be a “dramatic” increase in beef exports from the States.

Following the announcement of the deal, the Tánaiste held a video conference with Northern Ireland’s First Minister, Deputy First Minister and Minister for the Economy to take stock of the trade deal and its impacts for Northern Ireland and the Republic. 

At today’s Cabinet meeting, Harris will brief ministers on the current state of play of EU-US negotiations ahead of a meeting of the Foreign Affairs Council (FAC) on Trade this Thursday and a meeting of the Government Trade Forum next Monday.

He will emphasise that negotiations at a political and technical level are being prioritised to find a mutually beneficial and balanced solution.

The Tánaiste has been in contact with European Trade Commissioner Maroš Šefčovič in recent days regarding the proposed EU countermeasures, which were announced last week.

Avoidance of unintended consequences for Ireland

Harris is understood to have set out Ireland’s position as it seeks to avoid any unintended consequences for the Irish economy.

He will engage directly with the commissioner and other European trade ministers at the FAC on Trade later this week.

Harris will also tell Cabinet that Ireland welcomes that negotiations between the US and China over the weekend which have led to a cutting of tariffs for 90 days.

He will state that there is still a need to see the detailed outcome, but will state the de-escalation is positive and shows that negotiations are leading to outcomes.

Leaving Cert reforms

Aside from tariffs, Education Minister Helen McEntee will update Cabinet on Leaving Certificate reforms, which will begin its first phase in September.

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The minister will tell her Cabinet colleagues that reforms will benefit the over 70,000 students who are beginning Senior Cycle in September and will reduce the pressure on students that comes from final exams. 

She will outline that supports will be provided to help teachers with these reforms, including the provision of sample papers, with over 26,000 teachers having already undertaken training. 

Despite initial concerns raised by the ASTI and TUI unions, a comprehensive package of supports has been offered to the unions. 

The minister will outline the package to Cabinet today, which includes confirmation of new arrangements for teachers to secure permanent contracts earlier, a reconfiguration of the Croke Park Hours, additional posts of responsibility in schools to support Senior Cycle Redevelopment and the establishment of working groups on areas such as AI and workload in schools.

She will tell Cabinet that it also contains a commitment to early rapid reviews on the revised subjects, the development of a right to disconnect policy for schools and an increase in the current annual Physics and Chemistry Grant, which will be extended to Biology and Agricultural Science.

The package also contains confirmation on how the local bargaining clause of the Public Sector Agreement can be satisfied by post-primary teachers in return for salary increases under the Agreement.

The ASTI and TUI will now ballot their members on the package with the results of these ballots  expected in early June.