A leaked EU Brexit memo has suggested agricultural trade could be done on an all-Ireland basis once the UK leaves the European Union.
It is reported that the memo came from the office of the European Commission President Jean-Claude Juncker.
It suggests that while cross-border trade would be subject to customs controls, agricultural produce could be treated separately. The proposal would require controls between Northern Ireland and Britain, it is understood.
The farming industry on both sides of the Irish border are unhappy with the leaked proposals.
According to RTE, the idea would be to limit the disruption in the vast agri-food flows across the Irish border, especially in dairy and beef.
This is because after Brexit, Northern Ireland food products and its animal health regime would be outside the EU's regulatory sphere and would be subject to checks, thus hardening the Irish border.
However, the author of the memo accepts that the idea of an all-Ireland trade in agri-foods within the EU's regulatory sphere would be controversial.
The Ulster Farmers’ Union (UFU) said that the erection of any barriers to agricultural trade between Northern Ireland and the rest of the UK is a “red line”.
Border issue
Responding to the leaked memo, Irish Farmers’ Association President Joe Healy said that Ireland’s objective in the Brexit negotiations must be the maintenance of the "closest possible" trading arrangements with all of the UK.
“Solving the logistical challenges associated with the border is of course important, but the real priority for the Irish Government must be maintaining the trading arrangements with all of the UK. Such a solution would substantially mitigate or eliminate any border issues,” he said.
“While this potentially addresses some of the border issues, the proposal does not address the economic and trading concerns for farming and the agri-food sector, either in Ireland or Northern Ireland. Great Britain is a much larger market for both economies than the internal market on the island of Ireland”.
Of the €4.5bn-€5bn of Irish agri-food exports going to the UK annually, approximately 80% goes to Great Britain.
The figures for Northern Ireland show a similar pattern. In 2015, Northern Ireland sold £2.1bn worth of food and agricultural products to Great Britain and exports to ROI were approximately £700m.
