Fianna Fáil Senator Malcolm Byrne has called for urgent action to avoid tariffs on flour coming into Ireland which would result in bread prices increasing by around 9%.
Senator Byrne commented, “Tariffs on flour will be very difficult for bakeries but a jump in bread prices will hit consumers hard and feed into general inflation. We need to ensure that Ireland gets a derogation on flour, as we import over 80% of the product.”
He expressed his concern at the Seanad Brexit Committee which heard from Food Drink Ireland, the business body that represents the food and drink sector.
Under Rules of Origin requirements in the EU-UK Trade and Cooperation Agreement, tariffs must be applied to imported flour unless a derogation is agreed for Ireland.
The Wexford Senator added: “In the long term, there may now be a greater market for us to industrially mill flour in Ireland but we must avoid the immediate threat to bread prices by avoiding the imposition of flour tariffs.”