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Brexit Issues

Dáil Éireann Debate, Tuesday - 8 December 2020

Tuesday, 8 December 2020

Questions (857)

Bernard Durkan

Question:

857. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the degree to which he remains satisfied that Irish lamb exports will continue to have ready access to its traditional markets post Brexit; and if he will make a statement on the matter. [42066/20]

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Written answers

Brexit poses challenges for the Irish sheep meat sector in because of its exposure to the UK market.  In value terms, Ireland exported €318 million worth of sheep meat ear, of which Great Britain accounted for €62 million (around 20%). 71% of export value was accounted for by EU markets, reflecting a lower degree of exposure to the British market than is the case for many other agri-food exports.

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 58%, will apply to sheep meat exports, based on the UK Global Tariff as announced.

There may be opportunities for Irish lamb to displace UK lamb in other markets in the absence of a trade deal. 

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. 

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 sheep has been achieved with a number  of third countires in this period including Japan, Kuwait and Quatar. This is reflected in the fact that 9% of export value is now accounted for by international markets.

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.

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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