Yahoo Finance UK no-deal Brexit tariffs a ‘potential disaster’ for Irish farming
It’s not good, no matter who you ask: the UK’s decision to impose tariffs on agricultural goods between the UK and Ireland under a no-deal Brexit is either a “defining moment,” or it’s a “potential disaster.”
And Irish foreign minister Simon Coveney said on Wednesday that it would be “very damaging.”
“The announcement by the British government of a tariff regime has very devastating implications for Irish farming, particularly in the beef, dairy, poultry, and pork sector,” Coveney told Irish parliament on Wednesday.
Though — to avoid a hard border — there will be no tariffs on goods moving from Ireland to Northern Ireland under temporary no-deal Brexit plans announced by the UK government, tariffs will be imposed on any goods moving either through Northern Ireland to the rest of the UK or directly to the UK.
READ MORE: No immediate Northern Ireland border checks from UK in no-deal Brexit
Though the UK said it would slash tariffs on 87% of its imports, some 13% of goods — beef, lamb, pork, poultry and some dairy products — will incur a tariff in order to support farmers and producers who have “historically been protected through high EU tariffs,” the UK government said.
Coveney said that the move could inflict €800m (£696m) in damage to Ireland’s agriculture sector, since it would be forced to compete with goods from countries like Brazil.
Speaking on Irish radio, Angus Woods of the Irish Farmer’s Association said that the tariffs signalled a “defining moment” for the Irish agriculture sector, and warned that it may not survive the imposition of the tariffs.
Irish agriculture minister Michael Creed said that they were a “potential disaster” — and said that he thought the publication of the proposals at this time were designed to scare those who favoured a no-deal Brexit.
Meanwhile, the Ulster Farmer’s Union suggested that the plans announced on Wednesday would be equally damaging for Northern Irish farmers.
READ MORE: UK government publishes temporary tariff regime for no-deal Brexit
UK tariffs imposed on goods from Ireland would “drive down prices and hit producers” in Northern Ireland, it warned.
“It could also potentially open the door to illegal trade,” said the union’s president, Ivor Ferguson.
He said the Ulster Farmer’s Union objected to zero tariffs on goods moving between Ireland and Northern Ireland, since it is “unlikely the EU would offer the same zero tariff to Northern Ireland or the UK as a whole.”
“This is why we have called for reciprocal tariffs,” he said.
“Whatever the EU applies, the UK should apply in return. The tariff plans emphasise why a no deal Brexit must be avoided.”
