US tariffs move unlikely to affect Irish pork exports

Exporters of pork products to the US are not expected to be seriously affected by the list of EU-sourced products, published by the office of the United States Trade Representative yesterday, which will have 100 per cent tariffs imposed on them from July 29th.

The US is suspending tariff concessions, to a value of $116.8 million (€115 million) annually, "in response to the EU's failure to comply with a World Trade Organisation finding that the EU's import ban on beef produced with growth hormones is inconsistent with WTO rules".

Among the products listed are various classifications of pork but these do not appear to include rashers, which are exported by Dairygold under the Galtee brand. A spokesman for An Bord Bia, the Irish Food Board, said the assessment of the impact, based on the board's initial evaluation, was that £1 million to £3 million (€2.32 million) worth of exports, in the form of fresh pork products, will be affected although the figure is likely to be at the lower end of this range. Foodstuffs such as confectionery and cereals are unaffected.

A spokesman at the Department of Agriculture and Food said the issue would be dealt with at EU level over the next nine days before the tariffs come into effect. The EU is likely to make a case that the US should be compensated for the ban on its beef through increased access to EU markets for other products.

Although the Republic will not be affected directly in a major way, indirectly it could suffer if major pork exporters in Denmark are left with large surpluses for EU markets.

Whether a "carousel system" of penalties will be implemented, where the product list would be changed at frequent intervals to maximise disruption, remains to be seen.

Mr Michael Patten, group corporate affairs manager of Glanbia, which processes half the pig throughput in the State, said the company would be unaffected by the move.

Beef is also on the hit list but Irish companies do not export beef to the US. French producers will be hit by tariffs being imposed on Roquefort cheese, goose liver pate, and truffles, luxury goods with high margins.

Duties will also be imposed on fruit juice, mustard, roasted chicory, onions and shallots.

The European Agriculture Commissioner, Mr Franz Fischler, said yesterday the US move was regrettable.

"My reaction to this news is one of deep regret," Mr Fischler told a news conference following a meeting of EU farm ministers. "I don't dispute the right of the US on this, but I don't understand it. The measure will only restrict trade."