BREXIT: Ireland's Varadkar Fears 'No Extra Time' Available

By Tara Oakes

     BRUSSELS (MNI) - Republic of Ireland Taoiseach Leo Varadkar told an

audience in Belfast Friday that he feared time was running out on Brexit

negotiations.

     Speaking at Queen's University, Belfast, Varadkar said that it was his

"fervent hope" that sufficient progress would have been made on the key issues

of the divorce bill, citizens' rights and the Irish border by October - a

prerequisite for parallel talks on any future relationship

     European heads of state are set to meet at the EU Council October 19-20

after the final week of scheduled first-round Brexit talks, which run October

9-13. Varadkar said it was at this point that the judgement would be made on

"sufficient progress".

     "Prime Minister May will be asked to leave and then the 27 of us then meet

in what's called Article 50 format, and we will decide whether or not sufficient

progress has been made. And that will depend on what's happened over the next

few weeks on those three key issues," he said.

     CUSTOMS UNION, FREE TRADE SOLUTIONS

     Varadkar repeated his desire for the UK to remain in the customs union and

single market - but acknowledged that such an outcome was unlikely.

     Instead, he called for a separate EU-UK customs union to avoid an economic

border on the island of Ireland.

     "After all, the European Union has a customs union with Turkey. Surely

therefore it's possible to have one with the United Kingdom," he said.

     "And if the United Kingdom does not want to stay in the single market,

perhaps it could enter into a deep free trade agreement with the European Union

and rejoin EFTA, of which is was a member prior to accession -- or the EEA," he

added.

     "If these things cannot be agreed now, perhaps we could have a long

transition period during which the United Kingdom stays in the single market and

the customs union while we work all of these things out," Varadkar said.

     BORDER WORRIES

     Customs union and free trade issues are particularly fraught for Ireland

because of the question of the border with Northern Ireland.

     Ireland has a greater interest than other member states in starting

parallel talks as soon as possible, given that much of the intricacies of an

Irish border solution will need an answer on free trade issues.

     Its present state allowing freedom of movement not only shores up the Good

Friday peace agreement, but is of prime importance for the island's agriculture

industry, where products can cross the border numerous times before being ready

for sale.

     "It's one of my biggest concerns, if Brexit goes wrong, that food and

agriculture north and south of the border will be very badly hit. If, for

example, the UK were to have different standards, we're into a very difficult

scenario," Varadkar said in Belfast.

     "There's no technological solution, there's no tolling system that's going

to tell you what's in the milk," he added.

     Changes in agricultural standards may be required for the UK to strike a

trade deal with the U.S. after Brexit and have emerged as a sticking point

within the British cabinet.

     But Varadkar was under no illusions that negotiations would be easy,

despite the urgency.

     "I do not underestimate for a second the enormity of the challenges that we

face," he said.

     "Time is running out, and I fear no extra time will be allowed."

--MNI Brussels Bureau; +44 203-865-3851; email: tara.oakes@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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