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Meanwhile more on the economic fallout of Brexit on both sides of the border January 12, 2017

Posted by WorldbyStorm in Uncategorized.

This from the Guardian, reporting a House of Commons select committee.

For workers in the North…

Dairy farms in Northern Ireland will “go out of business” after Brexit if barriers to trade with the Republic of Ireland are erected, the government has been warned.

The risk centres not just on the potential loss of exports to the supermarkets in the republic but the loss of a highly successful global business in cross-border production of milk and cheese products, a House of Commons select committee was told on Wednesday.

And for workers in the South:

He told the committee more than 25% of the region’s raw milk went south of the border to be processed but a hard Brexit would close down that flow, not just because of tariffs and customs checks, but because of the burden of paperwork relating to issues including traceability, animal welfare and food standards.

He said 25% of pasteurised milk went south of the border for use in products such as infant formula.

That business could ultimately be picked up in Northern Ireland after Brexit, but there was not enough time in two years to build facilities to replace those in the republic, he said.

As for those sunny uplands that we hear so much about in relation to opportunities for the UK outside the EU trading with non-EU states…

The committee heard that Northern Ireland exported to up to 100 countries, including more than 50 countries which had a trade deal with the EU.

Johnston told MPs that the current 15-16% tariff imposed on their products in countries such as Thailand and Malaysia would “at least double” once the UK withdrew from Europe. “That would kill that business,” he said.

The committee also heard that 40% of lambs went south of the border with much of the meat from sheep going on from the republic to France, a supply route that could also be adversely affected by a hard or soft border.

And then there’s this… freedom of movement and workers.

The Northern Irish farming industry was also questioned about the heavy reliance on migrant workers, with 65% of the workforce in the food-processing business coming from elsewhere in the EU.
Bell told MPs the industry would be crippled without these workers. “People from the red meat processing centre, they will tell you, local people don’t want to work in the food processing. They have basically said to us if we don’t have access to that migrant labour we’re gone,” he said.


1. EWI - January 12, 2017

I can’t imagine that the likes of Tesco will welcome Brexit in the context of how it affects their Irish operations, either. Which may be no bad thing.


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