UK and Ireland retailers warn of no-deal tariffs

With just 36 days until the UK leaves the EU the leading retail bodies in Ireland, Northern Ireland and the United Kingdom have said a no-deal Brexit could have “devastating consequences”.

The British Retail Consortium (BRC), Northern Ireland Retail Consortium (NIRC) and Retail Ireland have issued a joint statement highlighting how increased tariffs and new regulatory checks would lead to increases in the cost of making fresh food and drink available to consumers.

The trade bodies said these tariffs could see increases of up to 45% on some everyday food items should the UK and EU revert to World Trade Organisation Most Favoured Nation Tariffs. Additionally they also warned of concerns regarding the cost implications of non-tariff barriers such as checks and delays.

Director of the NIRC, Aodhán Connolly, said: “A no-deal Brexit brings tariffs, customs processes, checks and costs which our industry, and Northern Ireland families in particular, cannot afford to absorb. Our households already have half of the discretionary income of British households and less than those in the Republic of Ireland. A no-deal Brexit will hit us first and hit us hardest. This is not acceptable.

“A hard Brexit means a hard border and the disintegration of supply chains that have been built up over 40 years of EU membership. This is not a binary choice for Northern Ireland between trade with the UK and trade with the EU. Our economy is built on access to both markets and we need that to survive. No-deal makes NI a less competitive place to do business and a more expensive place to live.”

William Bain, head of EU and international at the BRC added: “It is not just the people on the island of Ireland that this will affect. Those in Great Britain will see the price of goods from Ireland and Northern Ireland rise. Our supply chains are highly integrated, with food ingredients coming from both Ireland and the EU, and 60% of the £2bn of NI agri-food bound for Great Britain crosses the Irish sea via Dublin.

“This will affect the price of shopping in the prime minister’s constituency of Maidenhead in the same way as it will in Belfast or Dublin, with cost rises. A ‘no deal’ outcome would have devastating economic consequences, potentially jeopardising years of positive economic development and integration across the islands of the UK and Ireland. It is imperative that this is avoided.”