The way has been cleared for a resumption by the end of September of the live cattle trade worth £70 million a year with Libya, following consultations between the Department of Foreign Affairs and a Libyan delegation visiting Dublin.
Lifting the Libyan ban imposed after the 1996 BSE crisis would prove vital to boosting the Irish beef sector, the IFA said.
The terms of a trade agreement, potentially worth in excess of £100 million, have been agreed subject to approval in Tripoli, with cattle trade scheduled to resume at the end of September. The Minister for Foreign Affairs, Mr Andrews, expressed satisfaction that the Libyan authorities had agreed to reopen their market to Irish exports of live cattle following a meeting with the six-member delegation last night.
It is understood that the agreement allows for the setting up of some form of Libyan trade office in Ireland, although exact details have yet to be finalised.
The deal allows for the export of 100,000 live cattle, worth £70 million, to Libya in a full year but will also allow for importation from Ireland of beef and dairy products, potentially worth £25 million in the short term. Libya has been importing cattle and beef from Australia and dairy products from Canada.
The IFA, which visited Libya in April in an effort to help secure resumption of trade, said the outcome would be the single most important factor in lifting confidence in the beef sector going into the vital autumn slaughtering period.
The next step would involve the ratification of the agreement in Tripoli. Veterinary conditions are the most important element needing approval.
The IFA president, Mr Tom Parlon, said: "It is now up to Ministers Andrews and Walsh to follow through with the Libyan authorities to guarantee that the agreement is ratified in Tripoli so that contracts can be signed and cattle boats can sail again."
Irish exports to Third World countries are expected to be more competitive this autumn compared to last year because of the strength of the US dollar, and within EU markets Irish beef is 10 to 14 per cent more competitive because of currency movements.
