Ireland facing 'bad or very bad' trade future with UK after Brexit

Ireland is facing a tough trade future with the UK, foreign affairs minister Simon Coveney has warned. File Picture

Ireland is facing into either a “bad or very bad” trade future with the UK from January 1, Foreign Affairs Minister Simon Coveney is warning.

Mr Coveney has said at least €1bn will be needed in next month’s budget to prepare the country’s businesses to cope with the impact of Brexit.

He is to table a significant Brexit memo to Cabinet tomorrow which will pave the way for a new Omnibus Brexit bill for debate in the Dáil.

With Brexit trade talks about to reach a critical phase this week, the Government, led by Mr Coveney, is warning that whether a trade deal is signed or not, the impact on trade and commerce will be significant.

The likely outcomes include a limited free trade agreement with fisheries agreed, or a no deal, which would see the UK and the EU revert to World Trade Organisation rules, which include tariffs.

Mr Coveney warned online shopping could be significantly impacted with extra excise duties and a loss of consumer rights likely.

Clear Concern

Sources told the  Irish Examiner Mr Coveney will table the cross-government plan to ministers for approval which will aid the country to be ready for the “worst possible outcome”.

It is clear there is a concern within the Government that the potential dangers of Brexit have been forgotten about by the public and ministers are keen to refocus the national attention to the likely impacts come 2021.

While the Government is satisfied that the issue of a North-South barrier will not arise because of the withdrawal agreement, potential trade blockages could occur on the Dublin to Holyhead route because of major delays at Dover.

Meanwhile, a senior DUP MP has insisted his party will not accept the Brexit withdrawal deal, in comments apparently at odds with his leader's stance.

Sammy Wilson said the deal must be "scrapped" or, at least, significantly changed. The DUP consistently opposed the deal at Westminster, arguing it creates an economic border between Northern Ireland and the rest of the UK.