Prices for beef could surge without a trade deal between the UK and EU
After Brexit, without an agreement between EU and UK, EU imports will be subject to new tariffs which are set by the World Trade Organisation.
Analysts from BRC say that as a result, the average tariff of all food imported by retailers from the EU would increase by 22%, some tariffs even reaching 44% for cheese and in the beef case with 40%.
This factor will lead to an increase in retail prices. For beef, the estimated rise in retail prices is between 5 and 29%.
According to BRC, over three-quarters of the food that the UK imports come from the EU, and most of the imports will be subject to new tariffs. Thus the cost to retailers of imported goods will rise.
"But working out what that means for consumers isn’t straightforward, as there many factors which influence prices. Even if those other factors stayed the same, there isn’t a direct relationship between tariff costs and consumer prices."
Furthermore, the report says that if tariffs on imports from EU will rise, this could lead to domestic producers also increasing their prices in order to maximise profits. BRC analysts conclude that for many products, the effect could be as if all goods foreign or domestically produced faced the tariff.
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