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The EU will not set complex trade rules that threaten the exports of whiskey and dairy products from all the islands.
UK EU Commissioner Mairead McGuinness told the Seanads Brexit committee yesterday that changing the rules of origin in the EU-UK trade deal, or any other EU deal, would be problematic.
To be very clear, these rules of origin exist and are as they are, she said. Brexit is the problem. Brexit has caused so much disruption, including in this all-island dairy market, which has grown over time.
She said TDs and Senators should continue to pressure the EU on these issues and that over time we could perhaps look at these issues in a measured way.
Dairy and alcohol producers on both sides of the border say the rules impose tariffs on Irish whiskey bottled in the north or Irish cheese containing Northern Irish milk, if these products are shipped outside the EU or UK.
William Lavelle, the head of the Irish Whiskey Association, told the Seanads Brexit committee on Monday that the Irish government needs to put much more pressure on the EU.
The European Commission has previously refused to change its rules to remove tariffs on UK flour containing foreign wheat, which is used by 90% of Irish bakers.
Tariffs threaten to push up bread prices, but despite letters from Tnaiste and the Foreign Minister, the EU has refused to budge.
Dairy and whiskey producers want blended products that cross the border multiple times to be finished, bottled or processed to be treated as EU products in trade agreements.
More than 10% of Irish whiskey sold worldwide last year contained components from distilleries on both sides of the border, while up to four billion liters of Irish and Northern Irish milk is blended with products such as butter, cheese or cream liqueur.
But Ms McGuinness said traders should focus on addressing issues with the Northern Ireland Protocol in the UK’s 2019 Withdrawal Agreement.
Changing those is problematic, Ms McGuinness said. What might be helpful is if we could overcome these difficulties around the broader implementation [of the Brexit deal].
She also complained about the lack of trust between the EU and the UK since the UK government unilaterally extended customs grace periods for food and parcel imports into Northern Ireland.
If the UK were to take further unilateral action in the coming weeks, the EU would react strongly to ensure that the UK lives up to its obligations under international law, she said on Tuesday.
There comes a time in a relationship when, if you are not treated fairly or with respect, you need to react.
She reiterated that she denied that the EU was considering imposing controls on Irish goods exported to mainland Europe if the UK refused to comply with the protocol.
There is no point here in the Commission or in the EU in making the issue an Irish issue, as it is clearly a Brexit issue.
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