David Kennedy, International Markets, Bord Bia – Irish Food Board

While Mercosur and the potential implications Britain leaving the European Union have been making headlines in recent weeks the negotiation of the Transatlantic Trade and Investment Partnership (TTIP) between the EU and the United States has been progressing quietly in the background.

The US is a vital market for Irish exports- currently accounting for approximately 21% of total Irish goods (food and non- food) exported. According to the European Commission the successful negotiation of this pact could ‘benefit Ireland more than any other EU Member State.’ EU Ambassador to Washington, David O’Sullivan is quoted by the Commission as saying ‘as TTIP aims to eliminate tariffs and behind-the-border barriers, Irish exports and jobs supported by them can only increase.’

After the UK the United States is Ireland’s second largest food export market and accounts for over €830m (CSO 2015) or approximately 8% of all exports. According to a 2015 Copenhagen Economics report commissioned by the Department of Jobs Enterprise and Innovation the TTIP is expected to grow overall Irish agriculture exports by 2-3%. This could equate to an increased value of over €200m per annum.

Notably the Dairy sector is cited as having the most to gain with a forecast positive impact of 10% should barriers to trade be decreased. Beef trade, on the other hand, is less clear with positive additional opportunities for exports into the US counter-balanced with implications of increased availability of US Beef on European Markets and the knock on effect on the competitiveness of Irish Beef. The study has estimated that TTIP could impact the value of exports of Irish Beef ranging from a negative of 0.8% to a positive impact of 2.2%.

One barrier to the importation of US Beef into the EU is the use of growth hormones in US beef production. EU legislation currently does not allow for this type of product to be traded and, according to the Copenhagen Report, it is not expected that a change in the EU’s stance on this will be part of TTIP negotiations.

What’s not certain is when TTIP will be fully negotiated and implemented. However, there can be no doubt that with Mercosur, TTIP, Trans-Pacific Partnership and other macro trading factors will continue to be headline news in months to come.

For further information please contact david.kennedy@bordbia.ie