Another round of negotiations between the UK and EU have finished in Brussels this week with a new problem coming into focus that impacts very directly on Irish trade, namely road haulage transport.

Virtually all of Ireland’s agricultural exports to the UK and EU are carried by road transport with refrigerated containers using the roll-on-roll-off ferries to get to Britain and on to the continent.

Road haulage critical to trade

As part of the single market, haulage companies based anywhere in the EU (and the UK until the end of the year) could collect a load and deliver it anywhere in the single market.

However, with the UK no longer part of this arrangement from 1 January 2021, part of the negotiation on the future trading relationship between the EU and UK has to deal with this.

This has become a point of friction in this week’s discussions, sources in Brussels told the Irish Farmers Journal, replacing fisheries and standards as the headline issue.

Roll-on-roll-off ferries

This is a particularly relevant issue for trade on the island of Ireland. Many were surprised last week when the Ulster Farmers Union president raised the issue that half of all Northern Ireland’s agri food deliveries to Britain were through Dublin Port, basically leaving the UK jurisdiction into the EU and re-entering the UK again at Holyhead.

Currently, a haulier could pick up for his load either side of the border, but that is now subject to negotiation.

Land bridge

The other big issue is the logistics of travelling through the UK border control at Holyhead.

One option that has been suggested and has much merit is that where either the UK or EU is used as a land bridge for transit, then a green lane could be created in and out of ports to avoid the inspection points.

Therefore, a green lane could be created for Northern Irish lorries through Dublin Port and similarly for Irish lorries through Dover on their way to the continent.

While green lanes would deal with the transit issue, the problem remains on picking up and delivering between the EU and UK and vice versa.

Current single market rules mean an Irish lorry coming back from France to Ireland can stop off in the UK to fill out a load if they have space.

Without a new agreement to replace the single market, this would no longer be possible. It would present huge difficulties for UK hauliers who currently do multiple pickups and deliveries in the EU27.

Comment

The COVID-19 pandemic has removed considerable focus on Brexit consequences in Ireland and the UK, but all of the risks to trade, particularly in agricultural produce, remain and there is no evidence that they are being seriously addressed, 20 weeks from upheaval in the way business is conducted between the EU and UK.

For Ireland, that means sales to Britain and the only apparent progress is provision for uninterrupted trade cross-border on the island of Ireland, based on Northern Ireland essentially complying with EU rules.

For an exporting island, this is a welcome but small benefit.

A clear structure for the logistics of trade after 1 January is the immediate priority between Ireland and Britain and there also remains the issue of the financial consequences of any UK trade deals, especially with Australia and New Zealand.

These present the prospect of creating intense competition for Ireland as the preferred supplier of imported beef and lamb to the UK, and will also present serious competition for domestic UK production as well.

The EU has created a compensation fund as part of the next budget, but if these deals come to pass, it will require regular topping up to compensate Irish farmers.

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