Bernard Durkan (Kildare North, Fine Gael)
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142. To ask the Minister for Foreign Affairs and Trade the extent to which he expects to be in a position to ensure that trade between Northern Ireland and the European Union can be facilitated notwithstanding Brexit in view of the need to ensure economic prosperity on the island of Ireland; and if he will make a statement on the matter. [4401/19]

Simon Coveney (Cork South Central, Fine Gael)
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North-South economic and social cooperation has benefited people across the island, and supported the development of an all-island economy that has enhanced the prosperity of all. Protecting these gains is not just about ensuring frictionless trade; it is also about facilitating peoples’ lives and livelihoods. Fundamentally, this is about peace, reconciliation and prosperity.

Protecting the all-island economy has been a major priority for the Government throughout the Brexit negotiations. The issue was addressed in paragraph 49 of the December 2017 EU-UK Joint Report, in the context of North-South Cooperation and protection of the Good Friday Agreement. The Protocol on Ireland and Northern Ireland within the Withdrawal Agreement protects the Good Friday Agreement and gains of the peace process in all its parts. This includes underpinning continuing North South Cooperation and protecting the all island economy, including by maintaining the Single Electricity Market.

North South cooperation and cross-border trade has grown significantly in the years since the Good Friday Agreement, strengthening a growing prosperity which both supports and is supported by the peace process. Underpinned by the current shared EU regulatory framework, cross-border trade at present represents the first export market for 73% of Northern Ireland’s small and medium-sized companies. More than 7,000 businesses trade from Northern Ireland across the island of Ireland, supporting over 165,000 jobs.

Recent research has also shown a high degree of integration of the economies North and South, including in supply chains and trade in intermediary products. This underlines the importance of securing an outcome in the Brexit negotiations that facilitates the continuation of the all-island economy as it functions today. This objective goes beyond trade and is to protect the Good Friday agreement in all its parts and the gains of the peace process. Peace and prosperity are mutually reinforcing and cross-border trade is an important element in supporting jobs and building prosperity.

Outreach to Northern Ireland’s economic and business sector continues, and my Department is facilitating North South relationship-building between business groups.

InterTradeIreland, one of the North South Implementation Bodies, helps small businesses explore new cross-border markets, develop new products, processes and services and become investor-ready. It also offers practical cross-border business funding, information, advice and support to SMEs across the island. In addition, InterTradeIreland has also developed programmes aimed at helping SMEs to plan for Brexit.

The Withdrawal Agreement remains the best option and the only agreement on the table that avoids a hard border on the island of Ireland and protects the Good Friday Agreement. Our ambition throughout these negotiations has been to ensure that the Good Friday Agreement can continue to operate in all its parts after the UK leaves the Union, and the Government is committed that the gains and benefits of peace for people North and South, and East and West, can be protected.

Bernard Durkan (Kildare North, Fine Gael)
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143. To ask the Minister for Foreign Affairs and Trade the extent to which he can continue to support the interests of the business community North and South in the context of the Brexit negotiations; and if he will make a statement on the matter. [4402/19]

Simon Coveney (Cork South Central, Fine Gael)
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Throughout the negotiations on the Withdrawal Agreement, I, as well as officials from my Department, engaged in extensive contact with representatives from EU Member States, the Commission and Task Force, and the UK, to advance Ireland’s priorities.

The Withdrawal Agreement, as agreed in November, and adopted by the European Council, is the only way to ensure an orderly withdrawal of the UK from the EU. It can provide certainty to citizens and business, North and South, as we continue our preparations for the new relationship with UK outside the EU. It puts in place a period of transition, up to December 2020, and extendable for up to one or two years, if needed, during which EU rules and regulations will continue to apply to the UK. This will allow for the negotiation of an agreement on the future relationship between the EU and the UK, which we hope will be deep and comprehensive.

At the same time, the Withdrawal Agreement, through the Protocol on Ireland and Northern Ireland, protects continuing North-South cooperation and the all-island economy while also recognising the continuation of the Common Travel Area.

It includes the backstop which provides a guarantee that there will be no hard border no matter what the outcome is to the negotiations on the future relationship, and that the existing frictionless travel and trade North South will be maintained.

Under the measures included for a backstop, should it need to be invoked, a UK-wide customs territory would apply, ensuring no tariffs or quotas, and including well established rules with regard to ensuring a level playing field. Northern Ireland would remain aligned to those rules of the Single Market that are indispensable to avoiding a hard border and protecting the all-island economy. It would provide businesses in Northern Ireland with the best of both worlds, access to the EU Single Market and the ability to trade freely with the rest of the UK.

I should be clear that the backstop acts simply as an insurance policy, which we hope will never have to be used. It remains our priority to achieve a future relationship agreement that can resolve all these issues, and obviate the need for the backstop. We are determined to quickly work towards that best possible outcome. The Political Declaration makes clear the EU and UK’s shared ambition to reach an ambitious, broad, deep and flexible partnership across trade and economic cooperation, among other areas.

At the same time, as part of the Government's longstanding and intensive Brexit planning and contingency work, we are providing an array of supports and information measures to assist businesses in Ireland to respond and prepare themselves. Across three Budgets, since 2016, the Government has put in place dedicated measures and schemes for the business and agri-food sector. This includes the Future Growth Loan Scheme, a €300m fund to support strategic capital investment for a post Brexit environment by business, and €71 million to further strengthen the agriculture sector’s ability to become more resilient in addressing the challenges of Brexit. Capital expenditure of €116bn over the coming decade under Project Ireland 2040 will also allow the State and its Agencies to properly plan major infrastructure projects, while ensuring that communities and businesses can plan ahead.

Government enterprise agencies continue to work with companies, helping them to deal with Brexit – making them more competitive, diversifying market exposure, and up-skilling teams. Both Enterprise Ireland and Inter-Trade Ireland are provided grants to businesses to help them get Brexit ready.

To better inform business and the public at large, the Government has also overseen a coordinated communication and outreach campaign, Getting Ireland Brexit Ready, through the Brexit website, social media and public events.