Irish Food Firms Most Vulnerable To Brexit Tariffs In 'No Deal' Scenario
Irish food firms would be vulnerable if the UK and EU fail to strike a Brexit deal. Costs of raw materials would be higher, while exports to the UK market would face high tariff levels.
This comes from the latest report from the Economic and Social Research Institute (ESRI), the Department of Business, and Enterprise Ireland who all identify Ireland’s reliance on imports of raw materials like petrol and fuel from the UK.
Irish-owned firms, the report claims, are more exposed than multinational to the increased costs, with food firms particularly vulnerable considering half of Irish imports used by Irish-owned firms are sourced in the UK.
“While the final Brexit outcome is still highly uncertain, an understanding of who is most exposed to any changes in trading arrangements is an important step in developing plans and policies to mitigate any negative impacts,” said Martina Lawless, author of the report and associate research professor at the ESRI.
“Food products stand out as being particularly exposed, with a relatively high dependence on the UK market as an import source and high potential tariffs in the absence of a comprehensive trade agreement.”
The report also highlighted the risks involved with exporting, as Irish exports to the UK will likely face many tariffs.
According to the report, the average tariff on the types of products imported from the UK will be around 2% in the case of a hard Brexit.
Welcoming the research work, the Minister for Business, Enterprise and Innovation Heather Humphreys, said “The research presented today provides a further contribution to the evidence base on the potential impact of Brexit for businesses and the broader economy and will help inform our ongoing development of mitigation actions.
“The Government is committed to ensuring the continued growth and resilience of Irish enterprise after Brexit by helping firms to remain competitive. We also remain committed to securing the best possible outcome for Ireland in Brexit negotiations, working as part of the EU27, and in full support of chief negotiator, Michel Barnier.”
© 2018 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click subscribe to sign up for the Checkout print edition.