One of the UK’s largest dairy producers has warned that a badly handled Brexit could lead to price hikes for food, and scarcity in the shops from April 2019, with dairy and meat products particularly hit.
Leaving the customs union in a hard Brexit scenario could lead to the price of meat doubling and the price of dairy, half of which is imported, rising by up to 50%. A block of cheddar imported from Ireland that costs £1 now will cost £1.41 under World Trade Organisation rules, with Ireland being a major producer of cheddar. This would prompt a vicious economical cycle and a period of “runaway” food price hikes, he warned.
We don’t have to charge WTO maximum import tariffs. They are maximums we are allowed to charge, not the amount we must.