Oireachtas Joint and Select Committees

Tuesday, 2 February 2021

Joint Oireachtas Committee on Agriculture, Food and the Marine

The Impact of Brexit on the Agriculture Industry: Minister for Agriculture, Food and the Marine

Mr. Paul Savage:

Rules of origin, as the Minister said, are clearly an issue that has arisen in the context of mixed milk and product from the North and the South of Ireland qualifying under EU free trade agreements. There was an issue with changing that situation in the short term in the context of the requirement that the Commission would essentially have to renegotiate all existing free trade agreements, which, of course, is a very difficult task and not one the Commission considered in the context of trying to conclude the negotiations with the UK in the lead up to the end of the year. To try to renegotiate all those agreements would be a very difficult thing for the Commission to do in any event.

It carries the risk of other issues being raised in potential attempts to renegotiate those agreements. There is a danger of opening up a hornet's nest of other issues being brought onto the agenda, including by third countries. There is an understandable reticence on the part of the Commission to engage in detail on that. However, we have an engagement with the Commission on this. There is also the possibility that, in finalising free trade negotiations in future, the rules of origin and preferential access issues could be resolved or addressed to our satisfaction. That would be in the case of negotiations that are ongoing now or may be undertaken in future. This is something towards which we need to look.

It is probably worth saying that the Minister for Foreign Affairs, Deputy Coveney, has been engaging with the Vice President of the European Commission, Mr. Maroš Šefcovic, on a number of issues relating to the implementation of the agreement. Rules of origin is one of those issues on which discussions have been taking place and engagement will continue for the foreseeable future.

Access of products that might contain Northern milk to European common market organisation, CMO, supports was mentioned. There is an issue for us in that regard, as the Commission has indicated that there would be a question over the eligibility of such products, which come from outside the customs territory of the EU, for those market support measures. We have engaged with the Commission on this point and sought to try to secure access for the products. The Commission says that it is not possible because of the associated rules of origin issue, but we are continuing to engage on it.

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