Northern Ireland

Republic prepares to ramp up no deal preparations as Dominic Raab seeks to reassure US politicians over Brexit

Dominic Raab was in Washington attempting to reassure US politicians about the latest Brexit developments. Picture by Victoria Jones/PA Wire
Dominic Raab was in Washington attempting to reassure US politicians about the latest Brexit developments. Picture by Victoria Jones/PA Wire Dominic Raab was in Washington attempting to reassure US politicians about the latest Brexit developments. Picture by Victoria Jones/PA Wire

THE REPUBLIC has no choice but to assume the UK and EU will fail to strike a trade deal, a Dublin government minister has said.

Minister for Public Expenditure Michael McGrath yesterday acknowledged that the British government's attempt to override elements of the Withdrawal Agreement through domestic legislation has increased the likelihood of a no deal.

The comments came as British Foreign Secretary Dominic Raab was in Washington attempting to reassure US politicians about the latest Brexit developments.

Some US politicians are concerned about the threat the UK Internal Market Bill poses to cross-border movement in Ireland.

Mr Raab was due to meet US Speaker Nancy Pelosi, who last week said there would be no UK-US trade deal if the Good Friday Agreement was undermined.

The controversy around the bill yesterday saw Scotland's Advocate General Lord Keen of Elie QC hand in his resignation.

He was was reported to be deeply unhappy after ministers admitted the provisions in the proposed legislation would breach international law.

Mr McGrath said the Dublin government planned to allocate significant resources in next month's budget to those sectors set to be worst hit by a no deal.

"There isn't anything that the Irish government could do that would come close to matching the scale of the disruptive impact on our economy of a no trade deal Brexit," he said.

"So we sincerely hope that sense will prevail, and that there will be a deal done, but from the point of view of framing a budget, the only prudent assumption to make at this point in time is that a no trade deal will be done in the next number of weeks."

Finance Minister Paschal Donohoe said the prospects of a no deal had increased as a result of the move at Westminster.

"My view in relation to the likelihood of this has changed in recent weeks and indeed days," he said.

"Particularly given and since the internal market legislation was published in the House of Commons. Of course that's been a very significant event.

Earlier Taoiseach MicheMicheál Martin said Britain did not want to disrupt Ireland's multibillion-euro trade land bridge to Europe.

The movement of goods to and from the continent via British ports like Dover and Holyhead represent the most commonly used and quickest route for Irish hauliers.

The Fianna Fáil leader said preservation of the overland route had been one of the key priorities of his country's Brexit planning.

"We do not have the sense from the UK Government that there is in any way going to be any sort of undermining of such trade," he said.

"They are still adamant that they want a comprehensive free trade agreement."

The transit of goods from Europe via the UK is worth billions of euro and carries thousands of vehicle movements every year, the taoiseach said.