MII fears tariff cuts blow to beef, lamb sector
Cormac Healy of the MII representative association for Irish beef processors, said: “The magnitude of the import tariff cuts now proposed by the EU Commission would effectively open up the EU borders to unlimited volumes of imports at prices considerably below prevailing prices for Irish or EU product.”
The domestic beef and lamb sectors in the EU cannot sustain import tariff cuts in the order of 50 to 60%, according to MII.
“Whether or not this offer is within the mandate laid down by EU Agriculture Ministers, or whether or not this really is the final offer from the EU, the one thing that is clear is that an outcome on WTO along these lines will have serious consequences for beef and lamb production and primary processing in Ireland,” said Mr Healy.
“Greater import access to the EU market and dramatically reduced potential for EU exports outside the Community”, was his assessment of the proposals put to the WTO by EU Trade Commissioner Peter Mandelson.
Mr Healy said 150,000 tonnes per annum of steak cuts such as striploin is already imported into the EU, after full import tariffs are paid. Tariff cuts now proposed would make additional imports of round cuts possible, by reducing them from 12% above the EU price today to 21% below the EU price in the future.
“Furthermore, the lower import tariffs have the potential to open up the EU market to forequarter beef imports destined for the manufacturing sector,” said Mr Healy.
“The real threat is that if these products can compete on the EU market having paid the full tariff then there will be no limit on the volume that can enter.”
Lamb imports currently take place under specific preferential import quotas at reduced or zero tariff. Other imports are not possible, but the tariff cuts now proposed would expose the EU market to imports of particular cuts such as legs or loins, according to MII.
