IFA Reaction to UK Election Outcome
IFA President Joe Healy said that ultimately a stable Government in the UK would probably be better in the long run.
“The first development following the result is that sterling strengthened. This further enhances the argument for a beef price increase,” he said.
“It now looks very likely that the UK will leave the EU on January 31st, based on the withdrawal deal negotiated by Boris Johnson. However, the most difficult negotiation is probably still to come as the UK and the EU try to agree a Free Trade Agreement (FTA),” he said.
“The most pressing risk here is that the transition period will be due to end on December 31st, 2020. It will be almost impossible to agree an FTA by then. This means that an extension to the transition period is likely to be required. If this extension can’t be agreed, we could face a potential cliff edge on December 31st, 2020” he said.
As the new EU Trade Commissioner, Phil Hogan will be a key player in the FTA negotiations.