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Brexit Issues

Dáil Éireann Debate, Tuesday - 8 December 2020

Tuesday, 8 December 2020

Questions (854)

Bernard Durkan

Question:

854. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which he expects Irish beef exports to continue unimpeded in the aftermath of Brexit to all destinations or alternative destinations in the loss of some markets; and if he will make a statement on the matter. [42063/20]

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Written answers

Brexit poses very significant challenges for the Irish beef sector in particular because of its exposure to the UK market.  In value terms, Ireland exported €2.4 billion worth of beef last year, of which Great Britain accounted for €909 million (39%).

If there is no agreement in the EU-UK negotiations, tariffs will apply on exports to and imports from Great Britain. Particularly high rates of tariff rate equivalent, estimated by my Department at 72%, will apply to beef exports, based on the UK Global Tariff as announced.

Even with an agreement, the need to comply with the new customs and regulatory requirements will increase the cost of trade, although every effort is being made by my Department and across Government to ensure the minimum possible disruption to trade flows and supply chains. 

Regardless of Brexit outcomes, the British market remains a priority market for Irish beef. I have had good engagement with key retail and food service customers in Britan, and I know that Ireland's reputation for safe, quality assured grass-fed beef is valued by those customers and by British consumers in general.

 Market diversification efforts have been stepped up considerably by my Department since the Brexit vote in order to mitigate the potential impact of trade disruptions.  Market access or enhanced access for beef has been achieved with a number of third countries in this period including USA, China, Japan, Singapore, Saudi Arabia, Kuwait, and Qatar. 

My Department and Bord Bia have led trade missions to key European and international markets, and that effort is continuing, albeit for the moment in terms of 'virtual' trade missions. Bord Bia's funding has been increased to allow for greater investment in market insight and development in priority markets. My own Department's network of agricultural attachés has similarly increased, particularly in Asia, where we now have attachés in the Embassies of Ireland in Beijing, Tokyo and Seoul.

As a result of Brexit uncertainty, exceptional aid payments direct to beef farmers and additional beef schemes were made available in 2019 and 2020. 

My Department has put in place financial and budgetary measures to help the agrifood and fisheries sectors meet the Brexit challenges they have faced to date. These measures were aimed at enhancing competitiveness and market and product diversification and included low cost loan schemes, supports for Bord Bia and Teagasc, direct aid for farmers and capital funding for the food industry.

The Government's Brexit Readiness Action Plan makes it clear that further measures to support businesses and affected sectors will be considered in the coming months.

The Brexit Adjustment Reserve announced by the European Union will be an important additional support for those adjusting to the new reality of trading with the UK as a third country. Every effort will be made to ensure that the agrifood sector gets a fair allocation from this Reserve that is commensurate with the impact on the sector.

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