5.1 Global Economic Challenges

5.1 Global Economic Challenges

It is within this context that strengthening and reaffirming the role of the World Trade Organisation (WTO) is of paramount importance to provide post-COVID-19 stability and certainty to global markets. Noting the very strong position of the Irish economy before the pandemic, Ireland’s status, as a highly open, export-focused economy is particularly sensitive to the economic challenges that an asymmetric recovery will have on global trade relations, and in particular with how countries respond to issues arising from an uneven recovery, for example within the steel industry and elsewhere.

The onset of COVID-19 in 2020 resulted in the effective suspension of economic activity of large sectors of the Irish and global economy. The COVID-19 pandemic added to the already difficult trading environment and particularly the multi-lateral trading system where according to a European Central Bank report1 there has been a noticeable rise in protectionist sentiment and continued trade tensions between the world’s largest trading blocks. COVID-19 has heightened those tensions and will continue to have an impact on the multilateral system as we observe an asymmetric global recovery where some countries and regions recover from the pandemic quicker than others.

Under these conditions, there is continued emphasis on ensuring that Ireland’s interests are strongly represented and robustly defended, and reflected at national, European and international level to ensure that the rebuilding of our economy and global demand is based on key principles that support jobs, job growth, competitiveness, productivity, innovation and sustainability.

International developments present us with many challenges and opportunities, but it is hoped that a renewed focused in the WTO under the newly appointed Director General Dr. Ngozi Okonjo-Iweala and a new US Administration will be key catalysts to securing necessary global responses anchored within a multilateral framework.

1. https://www.ecb.europa.eu/pub/economic-bulletin/articles/2019/html/ecb.ebart201903_01~e589a502e5.en.html#:~:text=The%20rise%20in%20protectionism%20implies,2009%20 (see%20Chart%201).

Organigram of Trade, Investment and related work across the Department and its Agencies

Enterprise

Ireland

Indigenous

Enterprise

Division

Brexit and Investment

Screening Unit

Trade and Investment

Trade Policy & EU Multilateral

Trade Unit

EU Affairs and Single Market Unit

Trade Licensing and Control Unit

Source: The Department of Enterprise, Trade and Employment