Mr. John Hughes:

On the rules of origin issue, where that is having an impact at the moment is in regard to the trading relationships with third countries such as Canada, Japan, Singapore and so on, under the EU free trade agreements from which Ireland benefits. They key issue that has arisen at this time is that in respect of those third-country trades, significant inputs from Northern Ireland can take us below the threshold needed for a product to be deemed an EU-origin product. That is impacting on the dairy and beverage sectors in particular. We are engaged with the European Commission on possible solutions in regard to free trade agreements we are currently negotiating at Commission level with, for example, New Zealand and Australia, to see whether the existing approach on rules of origin can be adapted to accommodate an all-island approach as distinct from the 26-county aspect.

That requires engagement with third countries, of which I namechecked a couple, which obviously would be looking for a concession in return. It requires a new approach in our relationships and trade with third countries. We are engaged with the Commission on that at the moment but we do not yet have a solution. We have potential landing zones that could assist us, but that does not have any impact on Ireland-UK or Single Market trade. It is about third countries with which we have a free trade agreement. We are looking to work with the Commission to see whether there is a way of having Ireland considered on an all-island basis within those third-country agreements. Ultimately, that will require an engagement with those third countries to see what concession they may be looking for as a normal quid pro quoin negotiations.