The non-tariff cost of exporting Scottish red meat to the EU could increase by up to £276 per shipment in the event of a no-deal Brexit, according to new research.
The study estimates that the administrative cost for exporting to the EU under WTO rules is likely to increase as a result of additional costs associated with veterinary inspections.
This is before businesses contend with potential tariffs on red meat as high as 45-50% and increased costs linked to transportation and insurance.
The research, by the Scottish Agricultural Organisation Society (SOAS), says this would further impact Scotland’s export price competitiveness.
The Scottish government's rural economy secretary, Fergus Ewing, said no-deal is 'by far the biggest threat' to Scotland's red meat sector.
He said: “This research is further evidence that Scotland’s red meat sector would be worse off under every scenario when compared to the current trade arrangements.
“With the export market already highly competitive, any additional costs involved with exporting to our largest trading partner post-Brexit is likely to put sales, and therefore businesses and jobs, at risk.
“The UK government should look at the weight of evidence collated over the last three years about the potential impact of ‘no deal’ on industries such as this, and take it off the table once and for all.”
It follows red meat body Hybu Cig Cymru – Meat Promotion Wales (HCC) warning how the sudden imposition of WTO-level tariffs could cause 'immediate severe disruption' for farmers in Wales.
