Thomas Byrne (Meath East, Fianna Fail)
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242. To ask the Minister for Foreign Affairs and Trade if the Government will negotiate a special dispensation on the tariffs on exports to the United Kingdom as part of the Brexit negotiations in view of the additional responsibilities that the State will encounter as the only European Union country with a border with the United Kingdom. [30566/17]

Simon Coveney (Cork South Central, Fine Gael)
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On 2 May, the Government published a comprehensive document on Ireland and the negotiations on the UK’s withdrawal from the European Union under Article 50 of the Treaty on European Union. This document sets out the approach of the Government to the EU-UK negotiations, which began formally on 19 June, following the successful campaign to have key Irish issues recognised in the EU negotiation position.

Following on from this publication, the Government is currently preparing a further paper on economic implications of the Brexit challenge. This will draw on the work to date across Departments, which will be developed to mitigate emerging sectoral challenges. These plans will build on ongoing cross-Government research, analysis and consultations with stakeholders, especially through the government’s All-Island Civic Dialogue process, and will be important in informing Ireland’s domestic response as well as our approach to the EU-UK negotiations.

Accounting for 17% of Ireland’s total exports, the UK is one of our most important trading partners. The potential impacts of Brexit are therefore profound, with specific sectors such as agrifood particularly challenged. The Government has consistently made it clear that Ireland wishes to achieve the closest possible trading relationship with the UK. This is that a number of our EU partners also share, as does the UK itself.

Future tariff arrangements will be a key focus, as will the need to minimise any burdens of customs or transit costs. Our hope is that a largely or wholly tariff-free arrangement will be possible.

In the longer term, we are also conscious of the risk posed by potential regulatory divergence between the UK and EU standards and another priority will be to ensure that the future agreement or agreements on the EU’s future relationship with the UK ensure a level playing field.

In its contacts with the EU Taskforce and EU partners, the Government has consistently stressed the unique impacts that the UK’s withdrawal will have on Ireland. In this context, the strong acknowledgement in the EU’s negotiating directives of the need to also “address issues arising from Ireland’s unique geographic situation, including transit of goods (to and from Ireland via the United Kingdom)” in the first phase of negotiations is most welcome.

The Government has made it equally clear that Ireland’s overall economic interests lie firmly in a strong and well-functioning EU with continued membership of the Single Market and the Customs Union. As an EU Member State, and in line with our EU rights and obligations, Ireland will be negotiating as part of the EU27 with the UK on the future EU-UK relationship, including with regard to trade and customs arrangements.

Ireland fully supports the phased approach that has been adopted by the EU, which foresees that discussions on the future EU-UK relationship will get underway as soon as sufficient progress has been made on the EU’s key priorities under the withdrawal process – notably citizens’ rights, the UK’s financial settlement and border issues, including in relation to Ireland.

My immediate focus – and that of my Government colleagues – will therefore be on working with our EU partners to ensure the negotiations continue in a positive and constructive manner with a view to ensuring that swift progress can be made on the withdrawal issues. This will be vital in ensuring that the parallel discussions on the future EU-UK relationship, including in relation to trade, can begin as soon as possible.