Brexit impact on red meat sector
Export costs to increase.
The non-tariff cost of exporting red meat to the EU could increase by up to £276 per shipment in the event of a ‘no deal’ Brexit, according to new research.
The study estimates that the administrative cost for the red meat sector exporting to the EU under World Trade Organisation rules is likely to increase as a result of additional costs associated with veterinary inspections.
This is before businesses contend with potential tariffs on red meat as high as 45-50% - which would further impact Scotland’s export price competitiveness - and increased costs linked to transportation and insurance.
Rural Economy Secretary Fergus Ewing said:
“A ‘no deal’ Brexit is by far the biggest threat to our red meat sector and our successful food industry. This research is further evidence that Scotland’s red meat sector would be worse off under every scenario when compared to the current trade arrangements.
“With the export market already highly competitive, any additional costs involved with exporting to our largest trading partner post-Brexit is likely to put sales, and therefore businesses and jobs, at risk.
“The UK Government should look at the weight of evidence collated over the last three years about the potential impact of ‘no deal’ on industries such as this, and take it off the table once and for all.”
Potential administrative cost implications for Scotland’s red meat sector exports when trading with the European Union under World Trade Organisation rules was undertaken by SAOS.