Marketing

Proposed no-deal tariff regime would be ‘disastrous’ for Irish food exports


The no-deal Brexit tariff regime disclosed on Wednesday morning would be a “disastrous scenario” for Irish food exports if implemented, the IFA has warned.

Following Prime Minister Theresa May’s Brexit vote defeat in Westminster on Tuesday evening, the Government published a temporary tariff regime for a no-deal scenario , which would mean that Britain would not apply tariffs on goods crossing the Border into Northern Ireland. However, goods entering the rest of the UK from the Republic of Ireland would face tariffs. It’s understood that while 87 per cent of UK imports would face no tariffs under the proposed temporary no deal plan, tariffs will be high in some sectors and would be a particular threat to the Irish beef and dairy sectors, as tariffs are set to apply to beef, lamb, poultry and shoes, although they will be levied at lower rates.

“Our most exposed sectors, particularly beef, simply will not survive the kind of tariffs being talked about. This would have a devastating effect in the rural economy,” IFA president Joe Healy said.

“We export over 50 per cent of our beef to the UK. If this is subject to tariffs, it will be a ‘direct hit’ of almost € 800 million on the sector,” he said.

The headline rates published on Wednesday by the government represent a percentage of the existing EU rate. They include 53 per cent of the existing EU rate on beef, which equates, for example, to 6.8 per cent on boneless beef plus € 160.10 (£138) per 100kg and 6.8 per cent on unboned beef and € 93 per 100kg.

Other rates announced on Wednesday include 60 per cent of the existing EU rate on poultry, butter 32 per cent, cheddar cheese 13 per cent, fish/seafood 11.9 per cent, and 83 per cent on milled and semi-milled grain . The existing EU tariff applied to non-EU lamb will be applied in the UK.

Mr Healy added that if the UK decide to have zero tariffs on food imports, this would also be hugely problematic as it is likely, under World Trade Organisation rules that zero tariffs would be applied to all countries. This could expose Irish food to competition from low cost, low standard imports from non-EU countries.

A tariff rate quota regime would see a similar situation where Ireland would have to compete against low cost imports for its part of that quota.

“Overall any ‘no deal’ UK regime will be very damaging for Irish farmers,” he said.

The new system would come into effect on March 29th if a deal is not struck. – Additional reporting The Guardian



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