Food Drink Ireland (FDI), the Ibec group representing the food and drink sector, has welcomed the Brexit support measures outlined in Budget 2020. Paul Kelly, FDI Director, said that if the support measures were rolled out efficiently and effectively, they could underpin the resilience of the agri-food sector, help maintain its UK market position as well as its ongoing focus on product and market diversification.
“Food and drink exports to the UK will attract tariffs in the event of a no-deal Brexit and will also face additional trading costs from non-tariff barriers. Irish food and drink exporters, operating on narrow margins and already struggling with a 20% depreciation in sterling, are in no position to absorb these tariff and trade costs. The new temporary tariff schedule published this morning by the UK Government continues to be very problematic for some foods and unless we see a significant degree of cost recovery in the marketplace, exports to the UK will be badly affected. This will require a multi-annual framework for Brexit mitigation.”