Oireachtas Joint and Select Committees

Thursday, 1 February 2018

Joint Oireachtas Committee on Foreign Affairs and Trade, and Defence

Brexit Issues: British Irish Chamber of Commerce

10:00 am

Ms Katie Daughen:

It very much depends on to whom one speaks and where they lie in the debate. There is division not only within the Cabinet and the British Government but within individual parties. We have been in Westminster twice and there is a possible visit planned for later this month, and we have advocated strongly on the proposals. It depends on where people would lie within the spectrum of their belief on Brexit. Those who are hard-line Brexiteers want to leave the EU and have very little association, politically, with the EU after Brexit. They do not feel a solution like this will work but rather in absolute free trade and the global Britain agenda, as Mr. O'Neill alludes to. Those who want to remove some of the political ties from the EU institutional role within the UK are more open to a trade solution, as we put forward in the big principles. It is very hard to know. It is worth noting that since we published this paper last November, the CBI - Ireland's equivalent to IBEC - came out with something similar the week before last. It is rumoured that Labour's policy position is also moving to something similar to what we have put forward in the principles. There is a shift and this is constantly evolving. Without some formal framework for regulatory alignment and trade tariff alignment, it is very hard to see a way in which those commitments made in the joint report can really be met.

The EU has been very open in what is on offer and there is not a CETA plus plus plus on offer. It is CETA or the Internal Market. There might be some openness to a customs arrangement like we propose, given that it kind of relies on the status quo. If the UK wishes to trade, it is very hard to see how it can have its own trade deals with third countries while maintaining open borders on the island of Ireland and east-west as well.

There is the point about the transition phase being too short. The EU Commission has set the deadline of 31 December 2020 on the basis that it is the end of the current multi-annual financial framework. There probably would be an option to extend the transition phase beyond that but it would require the UK paying into the next framework budget, which could be very sensitive politically within the UK. There is a possibility nonetheless.

The Good Friday Agreement and the trade piece was mentioned. The Good Friday Agreement has rightly been given much focus. We believe we are putting forward a trade framework that could almost address many of the concerns around the Good Friday Agreement and uphold the commitments of both Governments to it. We are trying to take it from a different angle and say that within trade one can almost address many of the concerns or issues that have been raised.

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