Why Ireland Must Back International Trade Agreements
Data in the European Centre for International Political Economy (ECIPE) policy brief “Trade, Jobs and Technological Change: What to Expect in the Next Five Years?”[1] is eye-opening. It shows that Ireland tops the global table having the greatest share of domestic employment in the business sector sustained by foreign trade at 82%[2]. This shows a remarkable transformation in our economy in the last 50 years. It reflects well on many aspects of Irish policy, not least our education standards and our success in profiling Ireland on the world stage, but also highlights the risks that being such an open economy carries. So why does it frequently feel when our legislators need to intervene to take advantage of opportunities to improve our attractiveness and competitiveness that international trade is somehow an inconvenience to many of our politicians.
Current context
It is difficult not to become consumed with the immediate drama surrounding President Trump’s executive orders and threats of tariffs, and trying to identify strategies to anticipate, address and counter them. Undoubtedly the pace will slow over the next few weeks but we can fully expect unpredictability and uncertainty to remain for the duration of this US Presidency. Now is the time to really grasp and embrace opportunities to develop other markets, which face similar uncertainties themselves and are looking to work with stable markets such as Ireland and the EU. Government needs to act to facilitate those opportunities.
The Imperative to Pass Mercosur, CETA, and the Unified Patent Court
Ireland stands at a pivotal juncture in its economic and political landscape. As a nation known for its open economy and its significant reliance on international trade, it is imperative that Ireland embraces and supports key international trade agreements such as Mercosur, the Comprehensive Economic and Trade Agreement (CETA), and the Unified Patent Court (UPC). These agreements are not mere formalities, but crucial mechanisms that will drive economic growth, innovation, and jobs in the coming years.
The Economic Rationale
Ireland’s economy has thrived on the back of its openness to global markets. The adoption of Mercosur, CETA, and the UPC promises to further enhance this openness by providing new opportunities for businesses, creating jobs, and fostering innovation. The ECIPE paper illustrates the profound impact that international trade can have on job creation and technological advancements. It shows a projected increase in job opportunities in sectors directly tied to international trade and technological exchange.
Job Creation and Economic Growth
The Mercosur[3] agreement, which links the EU with South American countries such as Brazil and Argentina, is expected to open up new markets for Irish businesses. This will not only enhance export opportunities but also stimulate domestic production. Similarly, CETA, which facilitates trade between the EU and Canada, has already shown potential benefits through the reduction of tariffs and the opening up of new markets. The Unified Patent Court, on the other hand, will streamline patent litigation processes within the EU, making it easier and less costly for Irish companies to protect their intellectual property.
By passing these agreements, Ireland can position itself as a hub for technological innovation, attracting both investment and talent from around the world.
Technological Advancement
One of the most compelling arguments for supporting new trade agreements is their potential to drive technological change. The global exchange of goods, services, and ideas accelerates innovation and technological development. By aligning with international trade agreements, Ireland can ensure that it remains at the forefront of technological advancements.
Mercosur and Technological Exchange
The Mercosur agreement is not just about agricultural and industrial products; it also encompasses the exchange of technology and services. This can be particularly beneficial for Ireland’s burgeoning tech sector, providing access to new technological resources and expertise from and new markets in South America.
CETA and Innovation
CETA’s provisions on intellectual property rights and technology collaboration can significantly enhance Ireland’s ability to innovate. The agreement facilitates easier access to Canadian technological innovations and research, fostering a collaborative environment for technological advancement.
Legal and Regulatory Alignment
The Unified Patent Court represents a significant step towards the harmonization of patent laws within the EU. For Ireland, this means a more straightforward and efficient process for patent registration and litigation. Such alignment not only reduces legal uncertainties but also encourages business investments and innovation.
Benefits for Irish SMEs
Small and medium-sized enterprises (SMEs) are the backbone of the Irish economy. By supporting the UPC, Ireland can make it easier for these businesses to protect their innovations and compete on a global stage. This is crucial for fostering a vibrant and competitive business environment in Ireland. Access to the UPC would substantially reduce costs and red tape for innovating Irish entrepreneurs wishing to protect their intellectual property in signatory countries.
Every year we celebrate the stories of inspiration and innovation from entrants to the Young Scientist Awards. They deserve the opportunity to patent their ideas on a pan-EU basis. Our competitiveness will suffer another blow if we don’t enable our innovators to take advantage of the same opportunities now available in most other EU countries. Government should be targeting to hold the necessary referendum with the Presidential election later this year.
Reducing Costs and Enhancing Efficiency
The UPC is designed to reduce the costs associated with patent litigation by providing a unified and streamlined process. This is particularly beneficial for Irish companies, which often face high costs and complex procedures when dealing with patent issues across multiple jurisdictions. By supporting the UPC, Ireland can ensure a more efficient and cost-effective patent system for its businesses.
Conclusion
In conclusion, the adoption of Mercosur, CETA, and the Unified Patent Court is not just a strategic move for Ireland; it is a necessity. These agreements promise to bolster Ireland’s economy by creating jobs, fostering innovation, and enhancing its competitive edge in the global market. The benefits of embracing international trade are clear and profound. Ireland must seize this opportunity to support international trade agreements and secure its place as a leader in the global economy.
By championing these agreements, Ireland can unlock new possibilities for its businesses, drive technological advancement, and ensure sustained economic growth for years to come. It is time for Ireland to take a bold step towards a future of prosperity and innovation by fully backing Mercosur, CETA, and the Unified Patent Court. Politicians across the political spectrum must get behind trade and promote it to the electorate.
Ian Talbot, Chief Executive of Chambers Ireland
[1] Published January 2025
[2] https://ecipe.org/wp-content/uploads/2025/01/ECI_25_PolicyBrief_01-2025_LY02.pdf Figure 3
[3] Mercosur was established in 1991 and includes Argentina, Brazil, Paraguay, and Uruguay.