The Irish food and agri-food sector should be slow in moving away from the UK market even in the event of a no-deal Brexit.
This was according to Tánaiste Simon Coveney who was addressing a Fine Gael event in Co. Cavan on Thursday night last, September 19.
The Minister for Foreign Affairs and Trade with responsibility for Brexit was speaking alongside Lakeland Dairies chief executive Michael Hanley, Verona Murphy of the Irish Road Haulage Association (IRHA) and Combilift managing director Martin McVicar.
“Nothing replaces the scale of the UK market (at least) in the short-term. It’s the highest paid market in the world,” Coveney said.
Diversification on reliance away from the British market is really important; that is happening, but people need to be realistic in how quickly it can happen.
The former Minister for Agriculture, Food and the Marine said recent new market openings in Vietnam, China and Japan had all been positive in terms of offering new options for beef, but that developing these markets to rival the UK would take a considerable period of time.
Coveney added that a trade agreement between the UK and Europe would likely result in “zero tariffs”.
“The last thing we want to do is switch away from the UK en masse and then find that there’s a future trade agreement in place and we’re starting again in terms of building the customer relationships with UK retailers and, anyway, they want to keep buying from us – that’s my understanding.
“We need to have those markets and the market share we have at the moment and the dominant position the Irish food industry has in the UK we need that intact for those better days to come through the disruption that may come from a no-deal,” he said.
Brussels meeting
Meanwhile, Michel Barnier the European Commission’s Chief Negotiator on Brexit met with Steve Barclay the UK Secretary of State for Exiting the EU in Brussels yesterday, Friday, September 20.
At the meeting, the state of play on the ongoing Brexit talks were discussed – both in relation to the backstop to avoid a hard border on the island of Ireland and the political declaration on the future relationship.
Barnier and Barlcay agreed that technical talks will continue. These talks deal with a first set of concepts, principles and ideas that the UK has put forward.
In a statement from the European Commission following the meeting it was outlined that: “It is essential that there is a fully workable and legally operational solution included in the withdrawal agreement.
“We remain willing and open to examine any such proposals that meet all the objectives of the backstop,” the statement concluded.
