The decision made by the US to introduce additional trade tariffs of 25% on Irish dairy products has been described as hugely disappointing news by Dairy Industry Ireland (DII).

The imposition of tariffs on Irish exports including butter, cheese, liqueurs and pork products follows the US winning the largest arbitration award in World Trade Organization (WTO) history in its dispute with the EU over illegal subsidies to aircraft manufacturer Airbus.

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In a statement on the matter, the Ibec group said it had been “working assiduously with processing members, as well as Irish and EU authorities, to try and ensure that Irish dairy products do not get dragged in as an unintended consequence of the Airbus/Boeing aircraft tariff dispute”.

Companies such as Kerry, Glanbia and Ornua are huge employers within the US economy, and Irish processors have a long record of both investment in production in the US, as well as having success in importing product from Ireland such as the Kerrygold success story, DII noted.

Irish agricultural product is already exposed to hefty duties in comparison to other industrial goods – and any escalation of this dispute will lead to damage to both the US and EU economies and consumer prices.

“DII is requesting that cool heads prevail on all sides of this process and any issues are referred to a WTO dispute resolution process that would form part of a negotiated and fair solution that would not impact from our perspective Irish processors, as well as farmers and consumers,” the DII statement concluded.