Post-Brexit tariffs risk huge shock to UK milk production
I fear there is a storm brewing in terms of key economic sectors. This article gives us an insight into the issues facing just one area of economic activity. It tells us:
The government’s no-deal Brexit plans to impose import tariffs on cheese will fail to protect British milk producers’ livelihoods, Dairy UK has warned.
If the UK leaves Europe without a deal by 31 October, about 18% of total dairy imports will attract a temporary tariff to try to protect our market. For cheese, the rate would be set at about €214/t (£190/t).
But Dairy UK, representing milk processors, has branded the proposal “inadequate”.
Speaking at the organisation’s annual dinner, vice-chairman Ash Amirahmadi called on the government to rethink its policy.
Mr Amirahmadi told delegates that Dairy UK had commissioned an independent report on the potential effect of a no-deal Brexit on milk products.
“It showed there would be a massive shock to raw milk prices if the dairy sector faced WTO tariffs going out and zero tariffs coming in,” said Mr Amirahmadi.
He added that the report findings were shared with the government.
“We were pleased the government recognised tariffs were necessary. However, the level chosen for cheddar cheese is not sufficient to avoid volatility and potentially the loss of productive capacity in this sector,” Mr Amirahmadi warned.