ICOS calls for de-escalation of EU-US trade tensions

The Irish Co-operative Organisation Society (ICOS) is urging EU authorities to work with their US counterparts to bring about an end to the trade tensions which have resulted in the US placing tariffs on European exports, including Irish dairy produce.

The US decided to place an additional tariff of 25% on some agri-food products, including Irish butter and cheese, in response to its opposition to the EU paying subsidies to airplane manufacturer Airbus.

The tariffs are expected to take effect following the next meeting of the World Trade Organization (WTO) on October 14, which will “impose a significant cost on the dairy industry at a time when uncertainty and the threat of a no-deal Brexit continues to cast a dark shadow”, according to ICOS.

This issue was raised in a series of meetings today, Thursday, October 3, involving ICOS Dairy Committee chairperson Peter Fleming, the European Commission, Ireland South MEP Seán Kelly and Copa Cogeca, the European farmers and co-operative organisation.

“Ireland will be one of the biggest losers from a dairy perspective, as the US is one of our top export markets. Irish dairy exports to the US were worth over €250 million in 2018. The vast majority of these exports were of butter and cheddar cheese, both of which will be subject to this additional higher tariff,” Fleming warned.

“Irish butter is already subjected to a substantial tariff of $1,541 per metric tonne, meaning these additional tariffs would cost something in the region of €10 million for Irish butter exports alone,” he added.

Fleming highlighted 86% of all EU butter exports to the US are from Ireland, which will lead to Irish produce being disproportionately impacted in a dispute; he stressed “that has nothing to do with agriculture”.

It is disturbing that the agri-food sector could again bear the brunt of yet another geopolitical fall-out.

“We are still grappling with the impact of the Russian import ban on the European dairy market and coming to terms with the threat of Brexit and its potential devastating impact on our largest export destination, and we must now also contend with new barriers and costs to accessing one of our principle international markets,” he observed.

Fleming called on both the outgoing and incoming European Commissioner for Trade (the latter of which is Phil Hogan) to turn their efforts to “finding a diplomatic resolution”.