Significant divisions have emerged between Dublin and London during negotiations over future economic links, following the Irish Government’s refusal to accept joint trade missions, particularly for the agri-food industry.
A report for both governments, carried out by PA Consulting Group and Cambridge Econometrics, was published yesterday, highlighting the deep ties that exist, and estimating that 208,000 jobs in the Republic are dependent on UK trade.
Meanwhile, the UK remains Ireland’s largest export destination, taking 16 per cent of Ireland’s total industrial exports two years ago, along with being the largest client for Irish service companies, almost 20 per cent of whose business takes place there.
Even though the research was carried out by consultants, the language used in the report has been closely watched in talks between 10 Downing Street and Government Buildings, though other departments in Dublin were not given a central role. Nevertheless, disagreement still exists between the two over the recommendation that "practical measures" to improve co-operation could include joint trade missions in places "where consumers may be too distant to differentiate between UK and Irish 'brands".
Opposition
Enterprise Ireland and Invest Northern Ireland already co-operate in such missions, but there is considerable opposition mixed with a degree of nervousness in Dublin about the prospect of anything similar happening directly with London, particularly in agri-foods, where the UK is keen to learn from Irish experience.
Dublin’s rejection of this point had been made forcefully, partly because of its reluctance to tie Ireland’s international food image to Britain, it is understood. Britain’s secretary of state for environment, food and rural affairs Owen Paterson – who previously served in Northern Ireland – is equally opposed, believing the UK should promote its own food industry internationally.
As well as trade missions, the report also recommends common food safety rules, along with suggesting Dublin and London should work on co-operation on the implementation of Common Agricultural Policy and CFP, to commence after the EU reforms have been agreed – though national interests are different.
“Growth, development and improved food chain security are critical. Recent high-profile events have highlighted the importance of food-chain security for consumer confidence and the role that effective bilateral and international collaboration is playing in restoring confidence in its integrity,” it said.
Welcoming the report, Taoiseach Enda Kenny said he was confident it would “help to identify further areas for cooperation” when senior Irish and British officials hold a two-day meeting in September – the only such meeting of its type that British officials engage in.
British prime minister David Cameron said he too was delighted “such a wide range of sectors in which Britain and Ireland can further strengthen economic collaboration to boost growth and help our countries succeed in the global race” have been found.
