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Agrifood Sector

Dáil Éireann Debate, Thursday - 4 May 2017

Thursday, 4 May 2017

Questions (17)

Bernard Durkan

Question:

17. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which he and his Department have identified those areas in the food sector most likely to be affected by Brexit; the measures taken or likely to be taken to minimise the impact including sourcing of alternative markets; and if he will make a statement on the matter. [21054/17]

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Written answers

The impact of Brexit on the agri-food sector is potentially very severe in the long-term, but also very significant in the short-term as the sector deals with the real and very immediate difficulties created by the significant fall in the value of Sterling against the Euro.

I have attempted to address these short-term challenges primarily through the measures announced in Budget 2017, including the €150 million low-interest loan fund, agri-taxation measures, increased funding for Bord Bia, and further funding under the Rural Development Programme and the Seafood Development Programme.

The more medium- to long-term impacts of Brexit include the potential disruption that will arise from:

- potential new trading arrangements and possible tariffs,

- potential changes to regulations and standards,

- potential border controls and certification, and

- the related areas of veterinary and health certification.

Our goal in this regard must be to maintain a trading relationship that is as close as possible to the current arrangements, with the minimum possible customs and administrative procedures and ongoing equivalence of standards. This must be accompanied by constraints on the UK’s ability to enter into trading arrangements with third countries that would have the effect of undermining the competitiveness of Irish and EU exports to the UK.

My Department undertook an initial limited study some months ago on the potential effect that a ‘fully tariffed’ trade between Ireland and the UK would have on certain agri food products. The initial results show that the estimated tariff rate equivalent (in the absence of an FTA) would be over 60% for beef and over 50% for dairy.

A more in depth examination of the effect is currently being undertaken within my Department, and it is anticipated that this exercise will still identify beef, dairy products and prepared consumer foods as being the products most likely to incur high tariff rates and duties.

Other agri products, which rely almost exclusively on the UK market, may also be severely impacted by currency volatility.

Irrespective of how the ultimate trading relationship between the EU and the UK is finally negotiated, I am of the view that it is prudent that Ireland reduces its dependence on the UK as a market for its agri-food exports, of which almost 40% went to the UK in 2016.

This requires a focused effort on identifying and developing new, economically viable markets. While our record to date has been very impressive, we have to raise the bar even further. For that reason I have recently outlined a seven-point plan aimed at increasing international market access for Irish food and drink exports. The plan will be implemented by my Department, with significant input from Bord Bia and Irish Embassies around the world, to help increase the footprint of our food and drink exports. Its components are as follows:

- The Establishment of a High-Level Market Access Committee;

- The allocation of additional market access resources in the Department;

- The commissioning of Bord Bia to undertake a market profiling exercise for potential third-country and EU markets for Irish exports;

- An intensified programme of trade missions to promote Irish food and drink on EU and third country markets;

- An immediate review of existing export markets where conditions of certification present barriers to trade or additional costs for exporters; 

- Increased engagement with the European Commission on measures to encourage a common approach to resolving issues relating to market access for EU products internationally; and

- The development by the Department of a new dedicated portal website which will bring together in the one location the full range of open markets and products, and the relevant conditions certification in a user-friendly manner for exporters.

I am certain that these initiatives will be of direct assistance to Irish food and drink exporters this year. They are entirely consistent with the Food Wise 2025 strategy for the development of the Irish agri food sector, and are all the more relevant against the background of the decision of the UK to exit the European Union.  We will, of course, keep these arrangements under review, in consultation with industry, to ensure that resources are deployed to best effect and that our efforts are focused on making real progress for business operators in priority markets.

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