Food prices could soar 40% in 'no-deal' Brexit, UK, Irish retailers warn
By Caoimhe Toman
Date: Thursday 21 Feb 2019
(Sharecast News) - UK and Irish retailers on Thursday warned that food products such as beef or cheddar cheese could be subject to 40% tariffs or more if the UK were to apply World Trade Organization rates on trade after a no-deal Brexit.
The British Retail Consortium (BRC), Northern Ireland Retail Consortium (NIRC) and Retail Ireland issued a joint warning this week that a 'no-deal' Brexit would lead to shortages and delays in deliveries of fruit, vegetables, fish, meat and dairy products.
The rates would affect all imported food and drinks said the BRC, meaning a 40% tariff on beef, 42% on imported cheddar, 46% on mozzarella, 21% on tomatoes and 15.5% on apples.
WTO tariffs and quotas on agri-food imports in a no-deal Brexit could also have grave impact on Ireland's annual €4.5bn sales to Britain, which account for 37% of the island's exports.
The concerns came as UK Environment Secretary Michael Gove denied Britain would operate a zero-tariff regime under a no-deal Brexit scenario. According to reports, he was preparing tariffs on beef, lamb and dairy products ahead if no agreement was reached with the EU.
Nevertheless, he was facing growing opposition even within his own government, with Chancellor Philip Hammond and International Trade Secretary Liam Fox claiming that tariffs need to remain low or UK citizens risked losing access to affordable food.
At present, the UK imported a lot of fresh products when out-of-season, with 90% of lettuce, 80% of tomatoes and 70% of soft fruits originating from Europe, such that applying WTO rates would see the price of food in the UK soar.
Andrew Opie, director of food and sustainability at the BRC, said: "We cannot easily find an alternative to imports through Calais where there are frequent ferry sailings and the Channel tunnel. The volumes of fresh produce imported through there are enormous, for example at peak periods there are approximately 130 lorries a day passing through with just citrus fruits."
William Bain, the group's Europe and international policy adviser added: "Our supply chains are highly integrated, with food ingredients coming from both Ireland and the EU, and 60% of the £2bn of Northern Ireland agri-food bound for Great Britain crosses the Irish sea via Dublin."
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