Day one of the World Meat Congress was overshadowed by US President Donald Trump's announcement of trade sanctions on Canada, Mexico and the EU. The sanctions are to protect national security. According to the US government, they will ensure that American steel and alloy companies remain in business to provide materials of national importance (eg tanks) and other materials if the US found itself at war in the future. The EU shipped €5.3bn of steel products and €1bn of aluminium products to America in 2017.
Day one of the World Meat Congress was overshadowed by US President Donald Trump's announcement of trade sanctions on Canada, Mexico and the EU. The sanctions are to protect national security. According to the US government, they will ensure that American steel and alloy companies remain in business to provide materials of national importance (eg tanks) and other materials if the US found itself at war in the future.
The EU shipped €5.3bn of steel products and €1bn of aluminium products to America in 2017.
Put simply this is protectionist policy and it will likely cause severe disruption to international trade, with tit-for-tat sanction announcements expected in the coming days.
EU reaction
The president of the European Commission, Jean-Claude Juncker said the EU would move ahead with €6.5bn of tariffs on American goods – which will include 25% tariffs on denim, bourbon whiskey, cranberries and peanut butter. A 10-page list of products has been drafted by the EU where tariffs will be imposed.
US farmer reaction
The Corn Growers Association released a statement yesterday saying that farm incomes are already on the floor and this uncertainty will impact every sector of the agricultural economy. Corn growers are currently planting crops and they don’t know who will be there to buy these at harvest. The National Cattlemens Association also expressed deep concern around any potential disruption in trade.The US exports €2bn in beef to Mexico and Canada, and these are extremely important markets for US beef. Any disruption in trade will hit producers hard.
What this means for Irish farmers
A trade war between America and the EU is bad news for a country like Ireland that is highly dependent on international trade. While tariffs on steel and aluminium will have minimal impact on Ireland, anything that affects global trade will have a trickle-down effect. The only positive would be eg if a country like China increased tariffs on American beef or pork, it could create an opportunity for Irish producers to get their product into China.
This is a subscriber-only article
SHARING OPTIONS: