Govt must resolve US tariff issue - Exporters
The 7% import duty levied by the United States from May this year has the potential to permanently damage Irish competitiveness in Europe.
Key industries are facing a 14% hike by year end and the Irish Exporters Association have urged the Government to use its European Union Presidency to resolve the matter, when US President George Bush visits Ireland in June.
IEA Chief Executive John Whelan said today: "There is an urgent need for the Irish Government during its term of presidency of the European Commission and particularly during the visit of George Bush to Ireland in June, to resolve this matter.
"This dispute does not affect manufacturers in Asia or South America who now have a competitive advantage in servicing EU markets from their home base," he added.
In 2003, Irish firms imported €7bn of goods from the US.
Most of these firms import, process and re-export to the EU.
Many of their products are affected by the import duty of 7% from May 1, 2004.
They state they are now facing competitive threats from other non-EU countries not affected by this dispute like Asia and South America.
Many firms have expressed their concern at the permanent loss of these markets if the dispute runs until March 2005 when import duties will be 17% on imported components from the US.
