The European Commission has said it does not expect that wine and spirits will be included in the first group of exemptions to be announced as part of the EU-US trade deal.
An agreement was reached last weekend between the Commission President Ursula von der Leyen and the US President Donald Trump that most goods exported from the EU to the US will be subject to a 15% tariff.
It avoided the threatened 30% rate from tomorrow in the absence of a deal and the subsequent countermeasures on US products exported to the EU.
A new fact sheet, published by the White House earlier this week, stated that the rate agreed as part of the trade deal includes pharmaceuticals and semiconductors.
However, the finer details of the framework agreement are still awaited, including what sectors could secure carve-outs.
It is expected that Mr Trump will sign an executive order in the coming hours giving effect to the 15% tariff, with a joint statement from the EU and US being issued tomorrow giving more details.
“It is not our expectation that wine and spirits will be included as an exemption in the first group announced by the US tomorrow, and therefore that sector, as with all other economic sectors, will be captured by the 15% ceiling,” European Commission spokesman Olof Gill told a press conference.
He said: “The Commission remains determined to achieve and secure the maximum number of carve-outs including…wine and spirits.”
Tánaiste and Minister for Foreign Affairs and Trade Simon Harris has discussed the ongoing work by the European Commission to agree a final negotiation text with the US with the EU Trade Commissioner Maros Šefčovič.
Tánaiste Simon Harris had a call with EU’s lead negotiator on trade (Photo: RollingNews.ie)
Speaking after the call, Mr Harris said from an EU perspective, “we’ll be looking to get as many sectors as possible to the zero for zero tariff.”
“It looks likely that there will be a carve-out or zero-for-zero for med tech, or certainly certain med tech products, but we need to see that detail,” he said.
“In relation to spirits and wine and beer, the European Union and Ireland are still really working very hard to try and get that to a zero-for-zero carve-out, whether that happens initially in the original framework or requires further negotiation is unclear at this stage, but we’re continuing to work our way through that.”
Mr Harris also held talks this evening on the US trade deals with the Northern Ireland First Minister Michelle O’Neill and the Deputy First Minister Emma Little-Pengelly.
A key focus of the meeting was the prospect of two different tariff rates being applied on the island of Ireland.
Exports from Northern Ireland into the US are subject to a 10% levy, under the deal made between the UK and the US.
Mr Harris has warned that such a differentiation will pose “huge complexities” for businesses.
Tomorrow, the Government Trade Forum will meet at Government Buildings “to map out Ireland’s response” to the announcement of the 15% tariff.
The forum is comprised of State agencies, business groups, unions and senior ministers.
The Department of Finance is due to outline to the meeting an analysis of what impact the levy will have on the Irish economy.
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