US removes tariffs on Greek and German cheeses but still at €40m for Irish dairy sector
The US has left the total amount of EU products subject to tariffs at $7.5 billion. Picture: iStock
Strong dairy markets have enabled co-ops to maintain or increase prices for July milk, despite a severe global economic slowdown due to Covid-19, and the US leaving import tariffs in place on dairy imports from the EU.
Lakeland Dairies has increased its milk price for July by 1c per litre (cpl); Dairygold and Arrabawn added 0.5cpl. Kerry, Glanbia, and Carbery have announced unchanged prices for July milk Co-ops have said dairy markets have been quiet in recent weeks, but noted growth in production across Europe and the US.
“There is stability, for now, in the markets, but the re-emergence of Covid-19 nationally and internationally is concerning, especially for the foodservice sector,” said a Lakeland Dairies spokesperson.
“As well as the supply-demand dynamic and Covid-19, lack of progress on a Free Trade Agreement between the EU and the UK is worrying.”
Glanbia Chairman Martin Keane said: “The current market balance is fragile. Weak global economic data and high rates of coronavirus in many key importing regions are of concern. Market direction will depend on the level of milk supply in key regions and recovery of foodservice demand.” American tariffs of 25% estimated to cost the Irish dairy sector €40 million a year remain in place, despite the US removing tariffs on certain goods such as Greek and German cheeses.
Despite saying it will begin “a new process” with the EU in an effort to resolve a long-running trade dispute over plane makers Boeing and Airbus, the US has left the total amount of EU products subject to tariffs at $7.5 billion.
Ireland is one of the countries most affected, with the US having selected product categories which leave Ireland ranked first for tariffs as a percentage of GDP, and per capita, and sixth in terms of absolute value of tariffs.
