OTTAWA, June 9 — The trading relationship between Ireland and Canada has increased due to tensions between Ottawa and Washington, according to an Ontario minister. Todd McCarthy MPP, Minister of the Environment for Ontario, told RTÉ News that while trade between the two nations has grown over the last decade, US tariffs have given it a boost.
He said it has definitely escalated. This development comes as RTÉ News understands that Ireland is on track to approve a major EU-Canada trade deal next week, known as the Comprehensive Economic and Trade Agreement (CETA), following Prime Minister Mark Carney’s visit to Ireland. Trade between Ireland and Canada is governed by CETA but Ireland has not ratified it due to a series of delays.
CETA has been provisionally implemented by Ireland since 2017 and since then trade with Canada has grown by 98%.
One sector that has seen a noticeable change is Irish whiskey, which continues to face the standard 15% tariff that applies to EU goods entering the US. Eoin Ó Catháin, director of the Irish Whiskey Association, said there has been “huge growth” year on year in Canada.
“Our export value to Canada has improved.
We sell over 420,000 cases. That’s a huge jump, even when you compare it to two years ago,” he said.
“We’re seeing the direct impact of that instability in the global trading environment.
And again, I suppose a greater appreciation for those trading partners who are a bit more certain on whom each country can rely.” A growth factor is an American alcohol ban in the Canadian province of Ontario, one of the biggest buyers of alcohol in the world. More than 3,600 US made alcohol products were pulled from shelves and taken off the menus at bars and restaurants in a retaliatory move made by Ontario Premier Do. As Ireland prepares to approve CETA, the trade relationship between Ireland and Canada is likely to continue growing.
With the US imposing tariffs and Ontario retaliating, Canadian businesses are looking to Ireland as a more stable partner. The coming weeks will be crucial in determining the future of Ireland-Canada trade relations.
With the expected approval of CETA and the ongoing tensions between the US and Canada, businesses on both sides of the Atlantic will be watching closely to see how the situation develops.
