The UK government has proposed that trade between the north and south of Ireland would remain tariff free in a no-deal Brexit scenario.

It remains to be seen how this proposal will be received by the EU and if it will be accepted.

However, concerns have already been raised that it could provide a legal route for companies to enter the UK market via Ireland without paying tariffs.

UK temporary import tariff announced today would therefore not apply to goods crossing from Ireland into Northern Ireland

"The UK government would not introduce any new checks or controls on goods at the land border between Ireland and Northern Ireland, including no customs requirements for nearly all goods," the document from the UK government says.

"The UK temporary import tariff announced today would therefore not apply to goods crossing from Ireland into Northern Ireland."

WTO tariffs

As previously reported by the Irish Farmers Journal, it is expected in a no-deal Brexit that World Trade Organisation (WTO) tariffs would automatically apply for trade going directly across the Irish Sea from Ireland to the UK and from other EU countries to the UK.

On more sensitive sectors such as sheepmeat, it is thought the UK will impose full WTO tariffs.

For beef and some dairy such as cheddar, a combination of quota and tariffs may apply.

In the case of beef, it is understood the UK would create a zero or low-tariff quota for roughly the equivalent amount of beef that it imports annually to meet UK consumer demand, estimated at 250,000t in 2018.

Ireland supplies three-quarters of the UK beef imports and would be most vulnerable in this arrangement because the quota would be open to all comers, including Brazil where the farmgate price is €2.20/kg compared with the Irish price of €3.75/kg.

Read more

UK plans to open doors to Brazilian beef

Breaking: Irish beef to lose out as UK to open floodgates to Brazil