Tariff stabilisation fund needed in no-deal Brexit, says FDI
Concerned that an additional €1.7 billion in tariffs could be placed by the UK on Irish food and drink exports in a move which would "decimate" the industry, Food Drink Ireland has called for a tariff stabilisation fund to be established
Print19 February 2019
Food Drink Ireland (FDI), the Ibec group that represents the food and drink sector, has called for a tariff stabilisation fund to help agrifood exporters offset the impact of UK tariffs in the event of a ‘no-deal’ Brexit.
The FDI’s statement followed worrying comments earlier today by Michael Gove, the UK’s Secretary of State for Environment, Food and Rural Affairs, that the UK will apply tariffs to food imports to protect British farmers in a no-deal scenario.
“Direct and immediate support measures are needed to offset these tariffs,” said FDI director Paul Kelly. “For the €4.5 billion of food and drink that Ireland exports to the UK, an additional €1.7 billion in tariffs could be placed by the UK.
“Tariffs are in effect a tax on trade and commerce, Kelly added. “They would decimate much of Ireland’s agrifood exports to the UK. Tariffs flow back to central exchequers at national and EU level and must be recycled into a tariff stabilisation fund to offset serious damage to exports and job losses.”
Michael Gove told the UK’s National Farmers Union annual conference in Birmingham that reports Britain would operate a zero-tariff regime were “not accurate”.
“One thing I can reassure you, it will not be the case that we will have zero-rate tariffs on products,” he said. “There will be protections for sensitive sections of agriculture and food production.”
The Irish Times reports the British minister hinted tariffs would apply to beef and “particularly” lamb, pinpointing livestock farmers as the most vulnerable in the event of a no-deal scenario.
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