Speaking at Leinster House, the Minister said the economy was strong.
“I wouldn’t describe it as vulnerable. We have a very diverse economy with a very strong life science sector, with a very strong FinTech sector. There’s a very strong technology sector,” the minister said.
He added that nine of the ten top global technology companies are based in Ireland which has meant a strong eco system and skills base has been established here.
“It’s not like you can pull up the anchor and go immediately because they are benefitting from our talent, our skills, our regulatory certainty, our infrastructure from being in this country. I think that is a very very significant asset in our corner,” the minister said.
Throughout his election campaign, Donald Trump has said he will be “America First” when it comes to his economic policy which will include trade tariffs and a change to the country’s corporation tax.
In particular, he has said he will lower the US corporation tax rate to 15pc for companies that manufacture at home, bringing it in line with Irelands 15pc tax rate.
Asked if he is worried that the lowering of the US corporation tax would pull companies from Ireland and back to the US, Mr Burke said “absolutely not” and said the global tax agreement from the OECD was needed.
He also said Ireland has more to offer than the corporation tax rate.
“In corporation tax, there’s a lot of journey to go, because we have obviously embarked on the OECD process and the pillar one and pillar two.
“We’ve legislated here, along with so many other countries, the EU has, but obviously so many big economies happen at the moment, particularly China and the US. So it’s very difficult to know what trajectory corporation tax would take.
“But I would point out, outside of cooperation tax, there are huge other areas, like skills, like the talent we have here, like the youngest population in the EU, like how competitive it can be where the most competitive economy in the euro zone,” he said.
However, the Minister said the possibility of tariffs was something he did not want to see.
“Obviously we have to see what was spoken about in the campaign, how that plays out over the next number of weeks and months ahead,” Minister Burke said.
“Our view is that we do not want to see any tariffs take hold. We saw under the previous Trump administration with steel and aluminum, where they were progressing with tariffs. Our view is that we don’t want to go down that road,” he added.
