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Brexit Impacts on Irish Agri‐food Exports to the UK

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  • Alan Matthews

Abstract

The Irish agri‐food sector is particularly exposed to the consequences of the UK's departure from the EU given that the UK is the destination for 37 per cent of its exports. This article discusses the main channels whereby Brexit may impact this trade. They include the impact of possible further depreciation of sterling and the loss of the protected market status that Irish exporters currently enjoy on their sales on the UK market. There is the possibility that tariffs may be imposed on trade flows between the two countries as well as higher trade costs when either exporting to or importing from the UK. There would also be potential disruption of supply chains on the island of Ireland and the particular difficulties of policing the land border between the North and South of Ireland. Solutions to address some of these problems are available, but will take time to negotiate. Even if the worst outcomes can be avoided, Brexit is likely to have significant structural implications for Irish agriculture. The erosion of the value of privileged access to the UK market will require structural adjustments both in terms of market diversification as well as farm‐level production. Le secteur agroalimentaire irlandais est particulièrement exposé aux conséquences du départ du Royaume‐Uni de l'Union européenne car 37 pour cent de ses exportations sont destinées à ce marché. Cet article examine les principaux mécanismes par lesquels le Brexit pourrait affecter ces échanges, y compris l'impact d'une éventuelle dépréciation supplémentaire de la livre sterling et la perte du statut de marché protégé dont les exportateurs irlandais bénéficient actuellement pour leurs ventes sur le marché du Royaume‐Uni. Il se peut que des droits de douane soient appliqués aux échanges commerciaux entre les deux pays, et que s’élève le coût des échanges, qu'il s'agisse d'exportations vers le Royaume‐Uni ou d'importations en provenance de ce pays. Le Brexit pourrait également perturber les filières de l'offre au sein de l’Île d'Irlande et rendre particulièrement difficile la surveillance de la frontière entre le nord et le sud. Il existe des solutions pour régler certains de ces problèmes mais leur négociation prendra du temps. Même si les pires résultats peuvent être évités, le Brexit aura probablement d'importantes incidences structurelles sur l'agriculture irlandaise. L’érosion de la valeur de l'accès privilégié au marché du Royaume‐Uni demandera des ajustements structurels en termes de diversification des marchés et de production au niveau de l'exploitation. Die Auswirkungen eines EU‐Austritts des Vereinigten Königreichs treffen insbesondere die Agrar‐ und Lebensmittelwirtschaft Irlands, von der 37 % der Exporte in das Vereinigte Königreich gehen. Der vorliegende Beitrag diskutiert die zentralen Faktoren, über die der Brexit diesen Handel beeinflussen könnte. Das beinhaltet die Folgen weiterer Abwertungen des Pfund Sterling und den Verlust des geschützten Marktstatus, den irische Exporteure derzeit auf ihre Verkäufe ins Vereinigte Königreich erhalten. Es besteht die Möglichkeit, dass der Handel zwischen den beiden Ländern mit Zöllen belegt werden könnte, und dass die Handelskosten für Exporte in oder Importe aus dem Vereinigten Königreich ansteigen könnten. Es könnte auch zu einer Beeinträchtigung der Wertschöpfungskette auf der irischen Insel und zu besonderen Problemen in der Überwachung der Landgrenze zwischen dem Norden und Süden Irlands kommen. Lösungen für einige dieser Probleme gibt es, aber diese auszuhandeln braucht Zeit. Auch wenn die schlimmsten Folgen vermieden werden können, wird der Brexit erhebliche Auswirkungen für die Landwirtschaft Irlands haben. Der Wegfall des privilegierten Marktzugangs in das Vereinigte Königreich erfordert strukturelle Anpassungen, sowohl im Bereich der Marktdiversifizierung als auch im Bereich der Produktion auf der Ebene landwirtschaftlicher Betriebe.

Suggested Citation

  • Alan Matthews, 2017. "Brexit Impacts on Irish Agri‐food Exports to the UK," EuroChoices, The Agricultural Economics Society, vol. 16(2), pages 26-32, August.
  • Handle: RePEc:bla:eurcho:v:16:y:2017:i:2:p:26-32
    DOI: 10.1111/1746-692X.12160
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    References listed on IDEAS

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    1. Alan Swinbank, 2017. "Brexit, Trade Agreements and CAP Reform," EuroChoices, The Agricultural Economics Society, vol. 16(2), pages 4-9, August.
    2. Brian J. Revell, 2017. "Brexit and Tariff Rate Quotas on EU Imports: A Complex Problem," EuroChoices, The Agricultural Economics Society, vol. 16(2), pages 10-17, August.
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    Cited by:

    1. da Cunha, Richard Alex & Rangel, Luís Alberto Duncan & Rudolf, Christian A. & Santos, Luiza dos, 2022. "A decision support approach employing the PROMETHEE method and risk factors for critical supply assessment in large-scale projects," Operations Research Perspectives, Elsevier, vol. 9(C).
    2. Marcin Pigłowski, 2021. "The Intra-European Union Food Trade with the Relation to the Notifications in the Rapid Alert System for Food and Feed," IJERPH, MDPI, vol. 18(4), pages 1-19, February.

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