Brexit talks crisis waiting in the wings
21 May 2020
BDO features on The Irish Times in light of recent analysis of the latest no-deal tariffs announced by the UK. BDO highlights that the UK’s no-deal tariffs would present significant threat to Irish exporters, especially for those in the food sector.
The article discusses how the threat of Brexit is still present despite the crisis brought on by the Covid-19 pandemic.
Referring to Paschal Donohoe’s speech at the Dáil on 20 May, the risk of the no-deal tariffs coinciding with the economic impact of the pandemic would be particularly damaging to rural Ireland.
BDO’s analysis of the latest no-deal tariffs announced by the UK points out that the Irish food sector, notably the beef industry, will be particularly vulnerable.
The pharmaceutical sector will also need to consider the implications – finished pharmaceutical items would be tariff free, but chemicals and active ingredients would face tariffs on entry to the UK, should the talks fail. New customs and VAT procedures would also kick in.
This poses a big threat to exporters already trying to cope with the fallout from the pandemic. Despite similar problems for many of its own sectors, the UK government is aiming not to seek an extension of the transition period.
Article adapted from the Irish Times. Read the full article here.