JANUARY 2018

NEWS
BREXIT
Irish co-operative body still has concerns after Brexit border deal
The last-minute agreement on the Irish
border, which has allowed Brexit talks to
move to the second stage, has been met
with a cautious welcome from the Irish
Co-operative Organisation Society (ICOS).
The provisional deal avoids a hard border
in Ireland, with “regulatory alignment”
taking effect when the UK leaves the
single market and customs union.
ICOS, which is the voice for co-ops
in Ireland, is concerned about possible
disruption to supply chains and joint
operations across Ireland and Northern
Ireland, with the rural economy in the
border counties supported by the €3bn
(£2.5bn) cross-border trade.
European affairs executive Alison
Graham said: “Ireland currently has an
all-island agricultural economy, with
strategies, economic structures and
government policies which span both the
Republic and Northern Ireland.”
She said many goods repeatedly cross
the border before they become a finished
product, with dairy co-ops “uniquely
exposed” – half of the northern Irish milk
is bought by co-ops in the Republic.
These concerns led ICOS to call on the
UK to reverse its policy and remain in
the single market and customs union.
But last week’s deal has eased some of
these fears, said Ms Graham. She added:
p The Irish dairy industry is especially exposed to disruption by Brexit
“We are now able to move on to the trade
talks, which was vital to overcome the
uncertainty facing business, and we have
also established a new default position.
“Should the negotiations end with a
trade deal the UK has agreed to ‘maintain
full alignment’ with single market and
customs union rules. This goes a long way
towards easing fears on the possibility of
a cliff-edge scenario, of a hard border and
WTO rules”.
“The alternative – regulatory divergence
– is a top concern for Irish co-ops, as it
would add significantly to trade costs,
increase customs issues and threaten the
position of EU imports to the UK.”
But there is still some uncertainty
surrounding the agreement. Brexit
secretary David Davis was forced to clarify
remarks which suggested the deal “was
much more a statement of intent than
it was a legally enforceable thing” and
Theresa May has said that “nothing is
agreed until everything is agreed”.
Ms Graham warned: “The clear
contradictions in the UK’s desired
outcome remain. UK government stresses
that it will be leaving the single market
and customs union, however within the
agreement it also commits to a ‘guarantee’
on avoiding a hard border on the island of
Ireland, while at the same time ensuring
p Alison Graham
‘the same unfettered access for Northern
Ireland’s businesses to the whole of the
United Kingdom internal market’, with no
indication on how this will be achieved.”
She added: “We maintain our call for
transitional arrangements, which maintain
the status quo, to be agreed as soon as
possible to remove the uncertainty facing
businesses. We also call on the EU and
the UK to ensure that these commitments
are fully respected and translated into a
legally binding agreement.
“We also very much welcome the
strategy outlined in the agreement to
address specific Irish issues also within
the trade talks, including the matter of the
transit of goods through the UK on their
way to mainland Europe.”
Irish co-ops rely on the UK as a land
bridge into the EU, she said, because it
is quicker than ferry transport, and ICOS
is worried these routes would be affected
once the UK leaves the customs union.
“It is doubtful that the current physical
infrastructure at the ports and other entry
points in the EU and the UK have the
sufficient space to conduct the necessary
customs checks,” she warned.
“Any delay would mean missed
connections to further destinations,
mandated rest times for drivers, and
spoiled goods.”
JANUARY 2018 | 5