Oireachtas Joint and Select Committees

Tuesday, 20 November 2018

Joint Oireachtas Committee on Agriculture, Food and the Marine

Implications of Brexit for Agriculture Sector: Discussion (Resumed)

3:30 pm

Mr. Padraig Brennan:

I apologise. We are sharing the results of the Brexit barometer and the position of Irish companies and the issues and challenges that exist. They concur with the analysis we are undertaking and are certainly making their own representations in that regard. Likewise, we engage strongly with the likes of the UK Food and Drink Federation and the Agriculture and Horticulture Development Board, AHDB, which is our counterpart organisation, on scenario planning and engagement. There is a coherence and consistency to what they are saying. We feed our views and thoughts into that process. As a semi-State agency, we cannot lobby directly.

I will ask Mr. Hamill to comment on transactions and suppliers after Brexit shortly. The implications for tariffs depend on whether the UK leaves the customs union and the shape of any trading agreement. If we take beef as an example, which is one of the key products we send to the UK, we could be looking at tariff rates of between 28% and 53%. For beef, we could be looking at a 12.8% tariff and €3,000 per tonne of a duty. It could be €1,700 for cheddar cheese. These are all WTO worst-case scenario tariffs. With lamb, it could be a 12.8% tariff in addition to €1,700 of a duty. Different tariff regimes exist. The European Economic Area is at the lower end of those tariffs. The figures I have given are the worst-case scenario figures in terms of WTO tariffs. They would have a significant and serious impact on our ability to supply the UK market and likewise any other European supplier.