Irish exporters stand to benefit from the temporary suspension of tariffs imposed on EU agricultural products imposed by former US president Donald Trump last October.
Some €7.5 billion in tariffs were imposed by the US after the World Trade Organisation accepted the US case that the EU gave support to European airplane manufacturer Airbus, a move that left US airplane maker Boeing at a global disadvantage.
The value of Irish agri-food exports affected by US tariffs , in 2019 figures, was about €422 million. These goods attracted an additional €105 million in tariffs in a full year. The tariffs included Irish butter (€190.2million), cheese (€43.7million) and Irish Cream (€184 million).
A wide range of foods including Kerrygold butter and Bailey’s Irish Cream were affected by the trade dispute.
However, President Biden has now agreed to a four-month suspension of the tariffs while the EU has agreed to suspend some €4 billion in similar duties on US imports.
It is understood that the decision to lift the tariffs was taken in a phone call between Mr Biden and the European Commission president Ursula von der Leyen.
Minister for Agriculture, Food and the Marine Charlie McConalogue welcomed the news saying it was “a great opportunity, for both the EU and United States, to engage in a constructive dialogue to find a permanent resolution to these long running disputes”.
IFA president Tim Cullinan said the resumption of normal trade between the EU and the United States is an important development for some premium food exports. “As an export-oriented sector, it’s vital that barriers are removed from some of our most valuable markets. Irish farmers rely on these markets to underpin the price they receive for their work and investment.”
Mr Cullinan said he hoped this signalled a new relationship between the two trading blocs, and looked forward to increasing the opportunities for Irish food exports.
