Carol Lynch speaks to Cliff Taylor on 'How the Brexit withdrawal deal would limit damage to Ireland'

It has been clear since UK voted to leave the EU that the harder the Brexit, the worse it would be for Ireland’s economy. So the draft withdrawal agreement offers some positives for the Irish economy, promising to keep the UK in a customs union with the EU – at least for a period – if this is needed to avoid a hard Irish Border and seeming to point the way to a close future trading relationship.

Talks on a future trade relationship between the EU and UK would start in earnest during the transition. If there is not a clear outcome guaranteeing no hard Border by the end of the transition period, then under the backstop plan the whole of the UK will remain in a customs union with the EU. Under the plan the North would remain even more closely aligned with the EU customs regime and single market rules, to guarantee no hard Irish Border.

This customs union plan would offer some wider economic protections to Ireland, even if trade will still not flow as freely as now. Carol says that the terms of this customs union would be important in determining the additional burden on trading Irish businesses, as would any divergence in other non-customs regulations.

*Adapted from The Irish Times, full article available here.