Leo: Trade wars are for losers

THE Taoiseach fears the US and EU will drift apart as a result of growing differences on trade and other areas, making ‘losers of us all’.

In a speech to the prestigious Brookings Institute, a foreign policy body, Leo Varadkar repeatedly warned against trade wars of the kind just instituted by Donald Trump, whom he meets tomorrow.

‘History shows that transactional diplomacy, protectionism and confrontation pull everybody down in the end,’ Mr Varadkar said. ‘It’s lose-lose.’

As one of the most open small economies in the world, Ireland is a strong proponent of free trade and free enterprise, he said, adding: ‘Alongside our EU partners, we oppose any steps that raise barriers to trade, whether through the imposition of tariffs or otherwise. Trade barriers make losers of us all.’

The Taoiseach then confessed: ‘I fear that there is a danger that the EU and the United States may drift apart due to growing divisions on trade, tax, climate change and many other areas.’

Each week €2billion in goods and services is traded in both directions across the Atlantic.