The Government has been proactive in preparing for Brexit and making a very strong case in Brussels on maintaining our unique trade links with the UK, Taoiseach Enda Kenny said this week.
Speaking at a Fine Gael Brexit event in Clane, Co Kildare, An Taoiseach said there have been over 400 meetings on Brexit involving ministers or officials. There have also been 100 trade missions to other countries and markets.
There will be challenges for exporting SME companies, An Taoiseach said at the event organised by Fine Gael. The €150m low-interest loan package recently offered for farmers was a practical step to help deal with Brexit, he said.
Listen to An Taoiseach and other participants in our podcast below:
Listen to "Fine Gael politicians on Brexit" on Spreaker.
Nonetheless, Ireland needs to diversify its food exports away from the UK and to new markets.
A long transition period after the UK leaves would be helpful said An Taoiseach: “A Brexit deal may take longer to agree than people imagine. The problem is that uncertainties can creep in.”
MEP Mairead McGuinness said that a three year transition period after the UK exits the EU is likely. That will be after the two years of negotiation now triggered by Article 50. “So it will be five years before the final trade arrangements come into effect,” she said.
She is concerned about what might happen if the EU and the UK do not reach an agreement by the time the UK exits the union in two years time: “Will the UK then do agricultural trade deals with New Zealand, Mercosur and other countries?”
Irish agriculture faces significant challenges caused by Brexit, Matt Dempsey, chairman of the Agricultural Trust said. It faces tariffs of up to 50% and increased bureaucracy.
The UK takes a significant percentage of Ireland’s beef and dairy product. It’s serious for farmers in manufacturing milk – there’s nowhere else for cheddar to go. It will require big investment and a long transition to develop alternative markets.
The situation is more serious for beef: “I can see Tesco putting up signs saying that they stand behind every pound of beef they sell, that they have inspected all the farms – in Brazil. Traceability in Brazil goes back just 70 days.
Irish agriculture will also miss the contribution of the UK to the CAP budget said Dempsey: “Where the shortfall will be made up from is not clear.
“Some Irish food companies may transfer processing operations to the UK.”