COVID-19 may have largely wiped Brexit off the headlines but protracted negotiations are ongoing behind closed doors between the EU and UK with less than 60 days to go to the end of the Brexit transition period.

Minister for Foreign Affairs, Simon Coveney TD, who is in charge of Ireland’s Brexit preparations, took part in last week’s Irish Farmers Journal ‘Agri-Food, Brexit and International Trade - The Next Decade’ webinar, giving the latest update on the negotiations.

From free trade to security co-operation, there are close to a dozen major segments currently under negotiation between the parties which will hopefully conclude in future working agreements.

Minister Coveney said last week: “I’m under no illusions as to the challenges we have in the next 10 days to 14 days which is the realistic timeframe to try and close this out and get a deal with the UK. There’s three things we need to think about – one, to get a future relationship agreement in place involving a basic trade deal – avoiding tariffs and quotas on trade across the Irish sea. The EU insists on fair competition between the two economies, there must be a level field for trade and the EU’s big concern is that the UK Government might deregulate and reduce its cost base or have state aid for businesses that goes way beyond what the EU allows now. The level playing field is a serious obstacle to progress and some progress is being made to resolve this.

“This time last year, we signed up to the treaty and the political declaration of what the future trade deal will look like. The UK Government signed up to this and then moved away. What’s needed is a clear series of agreements and a governance model to agree future disagreements as might arise. It is really important to Irish businesses that this is in place to make sure we remain competitive with Great Britain.

“Two, fisheries is still a big obstacle to an agreement. It goes way beyond its financial importance and just fisheries, it is sovereignty. In my view, fisheries will be the most difficult issue to finalise in these negotiations. The UK is looking to be facilitated by the EU to access energy markets, road haulage, services and financial services and so on, and that’s why these issues can only be resolved in an overall package that allows for give and take on both sides.

“I believe we will get a deal. The cost of not getting one is very high for Britain and also for Ireland. The idea that we move into 2021 without a deal, and cobbled together sectoral contingency plans to allow for basic access in and out of the UK, the cost of failure is very expensive for all sides, particularly for the UK.

“It won’t be easy. Everything has gone quiet for the last three or four days because the negotiators are in a very quiet zone with very little leaking out and that’s what we want. Instead of playing out on the floor of Westminister or national parliaments, we need sensible compromises being made so we can avoid no deal as we move into the second half of next year.”

Outrageous

Minister Coveney said that when it comes to the issue of the all-island economy, good progress is being made. “It is international law. The UK has threatened to pass its Internal Market Bill – threatening they will pass laws anyway – that would be a blatant breach of international law and the treaty they signed up to less than 12 months. What Britain is proposing there is outrageous in my view and is causing political division.”

Linked to the Northern Ireland protocol are issues like State aid and tariffs with the Minister saying there was some “really difficult issues about supermarket supply chains” also in play. “It is now a No Trade Brexit not a No Deal Brexit. We wish it was not happening but it is. Businesses have 65 days to get their act together. Register for a customs number. Engage with Revenue. Take on a custom agent. From a state perspective, we have grants and advice for busineses. We can get a deal – doable but difficult is how I would describe it. The next 14 days – after 4.5 years of negotiations around Brexit – hopefully we will have more than just a basic trade deal intact.”