The UK prime minister’s announcement to call off the House of Common’s vote on the proposed Brexit deal has meant that the pound has weakened against the euro from 89.3p/€1 to 90.7p/€1.
Not only will this add to anxieties of a no-deal Brexit scenario, but it could have a potential impact on Irish agri-food exports, as 90p/£ is traditionally seen as critical in terms of Irish exports being competitive in Britain.
Therefore, the more sterling weakens, the bigger the impact on Irish farmers and their produce.
Dip in currency
For farmers in Northern Ireland and Scotland, the dip in currency will have made their produce more competitive, which could also have an impact on Irish farmers.
Prime minister Theresa May stated that the House of Commons remained divided on the issue of the northern Irish backstop included in the proposed deal.
“On one issue – the Northern Ireland backstop – there remains widespread and deep concern,” May stated in an address to fellow members of parliament.
“As a result, if we went ahead and held the vote tomorrow, the deal would be rejected by a significant margin.”
She went on to say that she believed the majority of the House did want to proceed with an exit agreement and therefore they would have to accept “some inescapable facts”, and that a deal would not be possible without a backstop.
Just finished a call with the Prime Minister. My message was clear. The backstop must go. Too much time has been wasted. Need a better deal. Disappointed it has taken so long for Prime Minister to listen.
— Arlene Foster (@DUPleader) December 10, 2018
May’s statement comes in opposition to her DUP coalition government partner Arlene Foster, who has vehemently opposed the introduction of any form of backstop in the Brexit deal.
The issue of a backstop is also a sticking point for the Scottish National Party, which believes that Scotland should have the option of similar trading arrangements as Northern Ireland if a backstop is included in the Brexit deal.
Just off call with PM. Expressed my deep frustration that the interests of a divided Tory party are taking priority over the interests of country and that delaying the vote is an abdication of responsibility, leading to even greater chaos.
— Nicola Sturgeon (@NicolaSturgeon) December 10, 2018
Concerns mount as the clock continues to countdown to March 2019, when the UK is expected to have an approved exit plan in place.
The biggest loser in a no-deal scenario would likely be the Irish agri-food trade, with a high percentage of our beef and cheddar market reliant on the UK market, not to mention the UK land bridge used to transport food products to the continent.
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