No-deal dairy tariffs announced

Published 14 March 19

Yesterday (13 March) the UK government announced the import tariffs that it will implement in the event of a no-deal Brexit. For Dairy, tariffs have been announced for butter and a selection of cheeses including processed cheese, cheddar and blue-veined cheeses (excl. Roquefort and gorgonzola). The butter tariffs are €605/tonne for butters and €738/tonne for butteroil; for butter this is about one third of the current MFN tariff. For the cheeses with tariffs, the rates range between €180-290/tonne, and are generally 13% of the current MFN tariff. There are also tariffs that currently exist on dairy products such as milk, cream, powders and yogurts that will be dropped to zero.

In 2018, 99.8% of UK dairy import volumes came from the EU and were therefore tariff-free. Under a no-deal scenario, approximately 18% of total dairy imports would be subject to a tariff. This tariff would on average be €622/tonne for butter (inc. butteroil) and €214/tonne for tariffed cheeses.

One notable consideration will be the Republic of Ireland, which accounted for 54% of UK butter imports and 88% of cheddar imports by volume in 2018. It is unclear how much of this product currently enters the UK via Northern Ireland, which according the government announcement would be exempt from tariffs, although imports from ROI into GB would still be tariffed.

Click here to see how the announced tariffs will affect other sectors

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