New Brexit Rules Could Add Billions to Cost of Meat, Dairy Imports into U.K.

New Brexit border controls in the United Kingdom could end up adding 10% to import costs over the next year when they go into effect on April 30. 

According to a report published by Allianz Trade on April 10, new restrictions on foods like fish, salami and cheese imported to the U.K. from the European Union could impact an estimated £21 billion ($22.5 billion) worth of agricultural imports. It could also increase import costs by as much as £2 billion ($2.1 billion). 

Allianz warns that this will lead to higher grocery prices, with the costs equating to a 10% tariff on around 3% of all imports into the U.K. That could lead to less consumer spending, as well as a possible 0.2% increase to inflation over the next three years. More than 80% of meat in the U.K. comes from the European Union, as well as 95% of its dairy products.

The U.K. government has said that the border controls are designed to help mitigate the risk of diseases from animals and plants coming across their borders, and have expressed confidence that impacts will be minimal. These measures have also been delayed five times in an effort to give businesses more time to prepare. 

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• Source: https://www.supplychainbrain.com/articles/39476-new-brexit-rules-could-add-billions-to-cost-of-meat-dairy-imports-into-uk