Dáil Éireann Debate, Wednesday - 8 June 2016
568. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine his plans in the event of a UK exit from the EU, with particular reference to unimpeded access to work markets for Irish beef, lamb, pigmeat, poultry or venison; if he remains satisfied that the future of the industry can be safeguarded in this event; and if he will make a statement on the matter. [14884/16]
View answerThe prospect of a UK vote to leave the EU presents potentially very significant challenges from a trade perspective, and that is especially true for the Irish agri-food sector. The UK is by far our largest single trading partner, with CSO figures indicating that exports of agricultural products in 2015 were worth €5.1 billion and imports worth €3.8 billion. Recent reports by the ESRI and Teagasc have highlighted the disproportionate impact a Brexit could have on the agri-food sector.
My Department has therefore been giving careful consideration to the potential impact, looking at the areas in which the greatest risks are likely to arise and on which we will need to focus, should exit negotiations commence in the coming months. Impacts are foreseen in areas relating to tariffs and trade, the EU budget, regulations and standards, and customs controls and certification.
For tariffs and trade arrangements, including the future direction of UK trade policy, it is clear that potential differences in tariffs could restrict trade in both directions and affect traditional supply practices, particularly for raw materials. Preferential agreements already in place with third countries could require adjustment to take account of a UK withdrawal. A further issue that could arise is the freedom of the UK to negotiate with other third countries. This could present a competitiveness challenge for third country suppliers, such as Ireland. However, negotiating such agreements could be a lengthy process.
As a net contributor to the EU budget, a UK exit will result in a loss of the UK contribution to the EU budget of between 5% and 10%, with possible consequential implications for CAP spending in the years ahead.
While an immediate impact is not foreseen on regulations and standards, potential differences could arise if the UK takes a different path to the EU, for example, in areas such as origin labelling.
Customs controls and certification issues are also likely to re-emerge, which will undoubtedly lead to additional administrative costs.
I and my Department are continuing to reflect on these matters so that, should the UK decide to leave, we are prepared to establish our priorities for the negotiations in the agri-food sector and to engage in these negotiations at the earliest possible date. My Department is also in ongoing consultation with our Government colleagues to ensure there is a coherent, whole-of-Government approach to the issue.
