Cian Hassett, Trade Market Executive, London Office, Bord Bia – The Irish Food Board
Key events this week:
European Union rejects Johnson’s call to rework terms of Brexit. Once again the EU has rejected Boris Johnson’s latest call for a rework of the terms for Britain’s withdrawal, namely the Irish backstop set out by his predecessor, with Donald Tusk saying the UK had offered no realistic alternatives to avoid a hard border in Ireland. With Johnson sticking with the idea that a reworked deal could only proceed if the provision was dropped, this latest stand-off has fuelled rising expectations that the UK will leave the EU on October 31st with no deal.
Jeremy Corbyn will do everything necessary to stop no-deal Brexit. The Labour leader has promised to do everything he could, including setting out his electoral platform ahead of a potential general election later this year, to stop what he called a disastrous no-deal, “for which this government has no mandate”. Mr Corbyn is still seeing opposition to his proposals however, with James Cleverly, chairman of the Conservatives stating that Mr Corbyn was doing everything in his power to frustrate delivering on the referendum result.
British exporters face auto-enrolment for no-deal customs checks. HMRC, along with the Treasury, will begin automatically allocating economic operator registration and identification (EORI) numbers to over 88,000 VAT registered companies over the next two weeks in a bid to address a huge gap in the number of exporters with correct paperwork in the event of a no-deal Brexit. HMRC figures suggest a total of 245,000 UK businesses would need one in the event the UK leaves the EU and there is an introduction of tariffs and other customs checks.
Emmanuel Macron casts doubt on Boris Johnson’s hope for Brexit deal. Despite a positive meeting on Wednesday with German chancellor Angela Merkel, the French president was slightly less optimistic saying that the two sides should be able to find “something intelligent” if there is goodwill on both sides, but stressed that this decision could not compromise the EU’s core demands on Ireland and the single European market.
Leaked Brexit preparedness document paints stark picture. Operation Yellowhammer, which was leaked over the weekend, is the UK government’s contingency planning for a no-deal Brexit and it paints a negative picture of the time following after October 31st. Trade disruption, food and medicine shortages and civil unrest are on the agenda, according to the leaked document. However Boris Johnson’s council disputes the conclusions laid out in the document, arguing that it shows only the worst-case scenario, adding that it was drawn up under an old regime and that £2billion is being funnelled into better preparations for a no-deal Brexit.
UK and South Korea to formally sign a continuity Free Trade Agreement. The agreement, being signed on the 22nd, will allow bilateral trade to continue in the event of a no-deal Brexit. The agreement, seen as a boost for Boris Johnson’s no-deal planning, will protect annual trade flows between the two countries, trade which totalled £14.6 billion in 2018. The UK will still need to obtain consent from South Korea to maintain existing tariff-free terms for UK goods with significant European components and for UK components in EU exports. This deal adds to the 13 trade agreements with 38 countries that the UK has so far signed, including the Southern Africa trade block, the Caribbean nations, Iceland, Israel and Norway
On Thursday, the pound jumped in value after Emmanuel Macron says the Brexit deal could be amended, jumping nearly 1% against the euro to a three week high of €1.1038
Implications for Irish food & drink companies:
The UK government has again this week been moving towards a no-deal Brexit. With no major weight behind Jeremy Corbyn’s calls to avoid a no-deal, and with the EU still maintaining they will not bend on their commitment to the Irish backstop, the possibility of a no-deal Brexit is getting stronger and stronger. As a result of this it is massively important that Irish food and drink companies are prepared for all possibilities that may come from this. Bord Bia is providing a number of services which Irish food and drink companies can avail of.
The 2019 Brexit Barometer Industry Findings Report and Action Plan can now be downloaded from the Bord Bia website. The Action Plan provides practical information and outlines a number of steps that Irish food and drink companies can take in order to mitigate the risks posed by Brexit.
Bord Bia has also announced a new range of support services for Irish food and drink companies to help them to prepare for Brexit. There include:
Information on the support services can be found by following the above links. Alternatively, all information can be found on the Brexit page on the Bord Bia website: https://www.bordbia.ie/industry/trading-with-uk/
Looking ahead:
4th September: UK Parliament returns for a brief session. Mr. Wright noted that in the last few years, Parliament has been recalled early due to an emergency.
September/ October: MEPs hold hearings for proposed Commissioners
14th – 17th September: Lib Dem Conference
21st – 25th September: Labour Party Conference
29th September– 2nd October: Conservative Party Conference
7th October (tbc): UK Parliament returns – 3 sitting weeks before Brexit
17th – 18th October: European Council Summit
24th October: The earliest date a General Election can take place.