Almost a year on from the vote that shook the Union and UK citizens are still without a vision of what the future holds post-Brexit.
It has been another week of wait and see in the UK regarding the upcoming Brexit talks. As of yet the government hasn’t confirmed whether they will adjust their opening position after their less than favourable election campaign. Yet the UK’s Brexit Secretary, David Davis, is due to meet with the EU’s chief negotiator Michel Barnier for opening negotiations next week.
Meanwhile in Westminster, more negotiations, between the Conservative party, who hold 312 seats following the election, 3 short of the majority needed, and the DUP who have 10 seats to offer on a ‘confidence and supply’ deal. A number of sources feel the DUP will push for a seamless and frictionless border the Republic of Ireland, as this is one of their key policies. The Queen’s Speech and State Opening of Parliament was postponed two days, now scheduled for next Wednesday the 21st, however with no deal currently in place, it appears the Prime Minister believes she will get government backing regardless of whether a deal is made.
For the food and drinks industry, a deal could be of huge importance. The DUP are keen supporters of the agricultural industry and wish to strengthen the export market, so are likely to push for a free-trade deal with the EU.
Last week’s election results also seem to have caused a shift in public opinion on how Brexit should proceed, with over half of those surveyed in a YouGov poll saying they would like to see a ‘softer’ Brexit. This shift could also be the result of the recent economic warning signs, which showed that UK consumers are starting to feel the tightening on their wallets as a result of the weakened pound and rising inflation. This squeeze which intensified further this week as inflation rose to 2.9%, leaving real wage growth even further behind.
The risks arising from Brexit, as well as the current uncertainty, already have implications for the Irish food and drinks sector. The immediate impact of the sterling depreciation hit the value of Irish exports, and potential trade tariffs and customs barriers are also creating pressure. Bord Bia will present clarity on how these various issues may impact the Irish food and drinks sector on June 29th, when it publishes the results of the Brexit Barometer. This will be unveiled at an event in The Thinking House from 9.00 – 13.00.
For more information on the above and our event Brexit Barometer: Results & Actions, please contact Shane.Hammill@bordbia.ie
