The Taoiseach says the European Commission's U-turn on plans to invoke Article 16 has avoided reciprocal action from Britain.
It comes after plans were set out to block vaccine exports from EU states in the Commission's row with pharma firm AstraZeneca.
That was met with anger from politicians north and south of the Border in Ireland.
There were calls from Unionists for restrictions on trade across the Irish Sea to be dropped, with Northern Ireland's First Minister Arlene Foster stating that British Prime Minister Boris Johnson must replace the Northern Ireland Protocol.
Micheál Martin, who had spoken to European Commission President Ursula von der Leyen about the matter, welcomed the reversal from the EU.
In an interview with Newstalk today, he said the swift action taken last night means that restrictions on trade can be avoided.
He said: "I think [Boris Johnson] understands the importance of the Protocol and the need for the Protocol to work in the interests of what we all agreed.
"That's why it was so important that the European Commission reversed their decision last night.
"I think that gives sufficient space to the British Government not to have to respond in a hurried manner but rather to continue to engage with Ireland and the EU and with Northern Ireland politicians in terms of the fine-tuning of the protocol."
Earlier, the Minister for European Affairs Thomas Byrne said the EU should never have triggered Article 16, stating that an "unnecessary political crisis" was caused in the North yesterday.
Mr Martin said lessons have to be learned from the controversy, while Article 16 "was never intended to be invoked in this manner".
He added that work needs to continue in "fine-tuning the operation of the Protocol" and that it is "too important to let politics undermine it".