Brexit Impacts on Irish Agri‐food Exports to the UK

The Irish agri‐food sector is particularly exposed to the consequences of the UK's departure from the EU given that the UK is the destination for 37 per cent of its exports. This article discusses the main channels whereby Brexit may impact this trade. They include the impact of possible further depreciation of sterling and the loss of the protected market status that Irish exporters currently enjoy on their sales on the UK market. There is the possibility that tariffs may be imposed on trade flows between the two countries as well as higher trade costs when either exporting to or importing from the UK. There would also be potential disruption of supply chains on the island of Ireland and the particular difficulties of policing the land border between the North and South of Ireland. Solutions to address some of these problems are available, but will take time to negotiate. Even if the worst outcomes can be avoided, Brexit is likely to have significant structural implications for Irish agriculture. The erosion of the value of privileged access to the UK market will require structural adjustments both in terms of market diversification as well as farm‐level production.