DUBLIN: While the British prime minister clarified her government’s approach to Brexit on Tuesday, clarity does not bring reassurance for Ireland.
In one key dimension, trade, it is clear that the UK’s approach will be particularly bad for Ireland, as well as maximising the potential damage to the UK economy.
Nonetheless, for the Irish Government, the most pressing priority is protecting the relationship with Northern Ireland. In that regard, Theresa May’s speech was important in that it recognised the UK’s responsibility to its citizens in the North, acknowledging the need to protect the freedom of movement on these islands. This is an important commitment, as the main potential obstacles to freedom of movement are within the UK’s remit, and not subject to wider EU regulations or interests.
However, the decision to leave the customs union is about as bad as it gets in terms of the economic impact on Ireland. It makes the implementation of a customs border between the North and the Republic inevitable.
Even if there were a free-trade agreement, allowing free movement of goods between the UK and the EU, this will not apply to imports from countries outside the EU. Thus border controls will be essential to ensure that imports from third countries, such as China or India, comply with EU regulations.
