A disorderly Brexit will cost Ireland €6bn by 2020, with agriculture expected to be one of the hardest hit sectors.
The latest Government report on the UK exit from the EU highlights that the agriculture industry is particularly “vulnerable”, with the beef and dairy sectors exposed.
The UK market accounts for 40% of overall export value for Irish beef, cheese and mushrooms.
Tariff regime
“The proposed UK tariff regime would significantly impact on the competitiveness of the Irish agriculture sector and is extremely damaging for Irish agri-food exports to the UK, and most particularly for the beef and dairy sectors which would be the most severely affected,” the report says.
The Government report outlines that supports such as the Future Growth Loan Scheme and the €100m Brexit beef fund are in place to help mitigate the financial impact of Brexit on farmers.
Customs
The issue of customs checks on UK goods was also highlighted and the report says that 190 Department of Agriculture staff are trained and in place to undertake import controls.
“Low-margin, high-volume business food processors are vulnerable to exchange rate volatility and additional costs arising from tariffs and non-tariff barriers,” the report said.
Earlier this year, the UK announced that there would be a grace period where no tariffs would be applied on goods specifically from ROI to NI, but this drew criticism from many factions which stated it was against WTO rules.
Smuggling
The issue of cross-border crime was raised and it was stated additional gardaí in the border region were deployed.
Smuggling is a particular concern for farmers, with a risk of cattle rustling.
Many border residents are also concerned that the establishment of a physical border could become the focus for dissident activity.
“Garda and PSNI authorities have said publicly that any border infrastructure or personnel would become targets for dissident republican paramilitaries and require police or other protection,” the report said.
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