A no deal Brexit would cause immense market disturbance for the agri-food sector. Britain is a very substantial market for our food exports. The EU and the Government must signal very clearly that significant, appropriate and additional market support measures would be put in place if there is no deal. The sector will need that reassurance and a delayed response would not be acceptable.
Below recent Dáil reply –
For Written Answer on : 26/02/2019
Question Number(s): 463 Question Reference(s): 9413/19
Department: Agriculture, Food and the Marine
Asked by: Brendan Smith T.D.
To ask the Minister for Agriculture; Food and the Marine the additional measures he plans to implement to support the farming and agri-food sector in view of the recent comments by British Secretary of State for Environment, Food and Rural Affairs, Mr. Michael Gove MP in relation to the imposition of tariffs on food imports to Britain in the event of a no-deal Brexit; and if he will make a statement on the matter.
As part of Brexit planning, my Department has carried out a detailed analysis of the implications for Irish agri-food exports in a worst-case scenario whereby the UK applies the EU’s existing tariff schedule on imports. This analysis found that the estimated cost of potential tariffs for the sector as a whole is €1.7 billion, based on Irish agri-food exports to the United Kingdom of €4.8 billion in 2016. The decision as to how and when the UK might impose tariffs on imports from the EU in the event of a no-deal Brexit is a sovereign matter for the UK Government.
I have been working very hard for some time to sensitise other Member States and the European Commission to the potentially very severe impacts of Brexit on the Irish agri-food and fisheries sectors, and to the likelihood of specific supports being required in order to deal with these impacts. The institutions of the European Union are very well aware of the likelihood of a significant impact of a no deal Brexit on Ireland’s economy because this has been part of the discussion from the beginning, and indeed this is explicitly recognised in the Commission’s own communication on contingency planning.
Most recently, I had a bilateral meeting with Commissioners Hogan and Vella to discuss the potential impact of a no deal Brexit on the Irish agri-food and fisheries sectors. We discussed the unique exposure of these sectors to the threat and the challenges that it could present. I stressed the need to be ready to deploy a range of measures to mitigate the potential impacts on farmers and processors, including through:
- traditional market supports and exceptional aid under the CAP’s Single Common Market Organisation regulation
- increased flexibility under State Aid regulations
- a common approach to managing fisheries and additional funding under the EMFF.
My officials are in ongoing contact with the Commission and other Member States on these issues as the situation evolves.