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This Christmas Eve, companies and representative bodies have been reacting to the news that an agreement has been reached between negotiators on a Brexit trade agreement between the EU and the United Kingdom.
John McGrane, Managing Director of the British Irish Chamber of Commerce, said businesses in Ireland and across the UK can breathe “a collective sigh of relief” today.
McGrane said the new trade deal will help protect nearly € 90 billion in trade across the Irish Sea and will keep 400,000 jobs on these islands.
“The limited agreement between the EU and the UK is to be welcomed as it removes the threat of new tariffs and ensures that a strong trade partnership is maintained from 1 January.
“This agreement also gives companies the certainty they need,” he said.
McGrane said that although the agreement protects the free trade of goods, companies still face higher costs and delays and interruptions in areas such as financial services, among others.
“This will add new costs to companies at a time when they are looking to recover from the increasing impacts of Covid-19,” he said.
‘The news comes as a relief for exporters and importers’
The Executive Director of the Irish Exporters Association (IEA), Simon McKeever, has said that today’s news will be a relief to exporters and importers on both sides, who faced the prospect of operating under the rules of the World Trade Organization. (WTO) with the imposition of tariffs. and EU and UK product quotas.
The executive director of the representative body of exporters in Ireland, has warned that while reaching an agreement is significant, it does not change the fact that customs and SPS controls will be applied from January 1, 2021.
McKeever said the substantial changes will be apparent one week from Friday, and Irish exporters and importers must stay on track and make the necessary preparations to successfully trade with a non-EU country.
“The Irish business community remained hopeful that an agreement would finally be reached, and I would like to congratulate everyone involved in getting this long-awaited agreement to air.
“Irish exporters, who have operated in turbulent and uncertain conditions for some time, will breathe a sigh of relief that a no-deal Brexit has been avoided.
“Today’s announcement means that Irish exporters and importers will not have to operate under cumbersome and very costly WTO rules, however there will still be changes and higher trade costs and I want to make sure that companies are not blindsided by today’s important announcement and ignore the preparations already made.
“Customs and SPS controls will continue and companies must be ready,” he warned.
Brexit trade deal ‘a welcome relief’ for Irish businesses
Ibec, the group representing Irish companies, has welcomed the announcement of the Brexit trade agreement, which has brought great relief to Irish companies.
Ibec Chief Executive Danny McCoy said that after nearly 50 years of the UK’s membership of the EU, these negotiations would always be lengthy and difficult.
“In this context, the announced agreement, which offers duty-free trade, should be welcomed.
“It is a great relief to Irish companies exporting to the UK that the threat of annual tariffs of around € 2 billion has been removed.
“Today’s agreement also provides a strong platform for a positive future economic relationship between the EU and the UK,” he said.
However, McCoy said the business conditions for Irish business with our closest neighbor will be very different, involving complex customs procedures and more expensive transportation options.
“The new agreements with the UK will also affect trade in services and much remains to be clarified.
“The transition period has been eroded by protracted negotiations, leaving little time for companies to adjust to the new agreements announced today,” he said.
McCoy said Ibec will continue to work with strategic business partners in the EU and the UK to ensure that supply chains adapt as quickly as possible and that Irish companies continue to serve their customers and support jobs in a business environment that already it is challenging.
Food Drink Ireland welcomes Brexit trade deal
Food Drink Ireland (FDI), the Ibec group representing the food and beverage industry, has also welcomed the agreement reached.
Paul Kelly, FDI director, said he welcomes the fact that “disastrous” tariffs have been avoided, but said the deal reached remains a very tough Brexit.
“Food and beverage companies will face significant non-tariff barriers to trade between Ireland and Britain with customs, SPS and other food safety requirements within a few days.
“This will lead to substantial ongoing costs that will have to be absorbed not only by the food supply chain but also by consumers.
“Reaching an agreement on measures to relax and facilitate customs and sanitary and phytosanitary requirements should now be a priority for both parties.
“This is the only way to reduce trade friction and limit the costs that are passed on to the food chain and to the consumer,” he said.
FDI is now also calling for measures to help Irish food and drink companies maintain their valuable position in the UK market and diversify into new markets, including; a state-backed export credit insurance scheme, increased investment in innovation, skills, enabling technologies, and market development.
The FDI said it believes that the EU’s € 5bn Brexit Adjustment Fund should be used to support the most exposed sector in the most exposed country, in addition to national funding from the Government’s Brexit Contingency Fund.
The Institute of Directors of Ireland welcomes confirmation of trade agreement
The Institute of Directors of Ireland has welcomed the confirmation that the EU and the UK have reached an agreement on a post-Brexit trade deal.
Welcoming news of the deal, Maura Quinn, executive director of the Institute of Directors (IoD) in Ireland, said those who have been at the center of the negotiations should be commended for their “tenacity and diplomacy.”
However, he said there remains “uncertainty” as a result of the Covid-19 pandemic and the significant damage that has been inflicted on the economy.
“This post-Brexit deal, if signed by both parliaments, will bring at least some level of certainty about the imminent threat that has existed since the UK referendum in June 2016.”
“In practical terms, there will still be enormous challenges for Irish businesses in adjusting to the new reality of the post-Brexit era,” said Ms Quinn.
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