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Brexit Damage Limitation: Tariff-Jumping FDI and the Irish Agri-Food Sector

Frank Barry
Frank Barry
, 
Xiaolu Sun
Xiaolu Sun
 and 
Benn F. Hogan
Benn F. Hogan
   | Aug 22, 2020
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Article Category: Research Article
Published Online: Aug 22, 2020
Page range: 61 - 74
DOI: https://doi.org/10.2478/ijm-2010-0007
Keywords
© 2019 Frank Barry et al., published by Sciendo
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Figure 1

Intra-EU trade: beef export breakdown by main products in 2016. Note: Beef products are divided into 11 different categories at the 6-digit HS code level. The five categories shown account for 98 per cent and 99 per cent of total UK and Irish beef exports respectively. Source: Eurostat, EU trade since 1988 by HS2,4,6 and CN8.
Intra-EU trade: beef export breakdown by main products in 2016. Note: Beef products are divided into 11 different categories at the 6-digit HS code level. The five categories shown account for 98 per cent and 99 per cent of total UK and Irish beef exports respectively. Source: Eurostat, EU trade since 1988 by HS2,4,6 and CN8.

UK main dairy export products in the intra-EU market and measures of Revealed Comparative Advantage for UK and Ireland in 2016

UK's main export products (8-digit level) Intra-EU UK dairy exports (€ million) Share of UK exports UK's RCA Ireland's RCA
04069021 184 15% 4.26 21.80
04012099 138 11% 1.44 0.05
04061080 102 8% 3.54 1.68
21050010 88 7% 1.14 0.10
04051019 79 6% 0.91 9.62
19019099 53 4% 0.57 10.19
Sub-total 643 51%
Total export to the EU28 1,255

Main beef export destinations in the EU28, 2016

Irish exports UK exports
UK 52%
Ireland 30%
Netherlands 10% 24%
France 8% 15%
Italy 8% 8%
Germany 7% 6%
Total of the above five export destinations 86% 83%

UK and Irish beef exports, intra-EU28

Within EU
€ million, 2016 Ireland UK
Total Beef Exports €1,897 €439
0201 Meat of bovine animals, fresh or chilled €1,616 €364
020110 Meat of bovine animals, carcasses and half-carcasses, fresh or chilled €111 (6%) €33 (7%)
020120 Meat of bovine animals, cuts with bone in (excluding carcasses and half-carcasses), fresh or chilled €83 (4%) €31 (7%)
020130 Meat of bovine animals, boneless cuts, fresh or chilled €1,422 (75%) €301 (69%)
0202 Meat of bovine animals, frozen €153 €42
020210 Meat of bovine animals, carcasses and half-carcasses, frozen €0.3
020220 Meat of bovine animals, cuts with bone in (excluding carcasses and half-carcasses), frozen €1 €2
020230 Meat of bovine animals, boneless cuts, frozen €151 (8%) €40 (9%)
0206 Edible offal of bovine animals, fresh chilled or frozen €128 €32
020610 Offal, edible; of bovine animals, fresh or chilled €111 (6%) €25 (6%)
020621 Offal, edible; of bovine animals, tongues, frozen €1 €0.02
020622 Offal, edible; of bovine animals, livers, frozen €1 €0.6
020629 Offal, edible; of bovine animals, (other than tongues and livers), frozen €14 (1%) €7 (2%)
021020 Meat; salted, in brine, dried or smoked, of bovine animals €0.2 €0.5

Selection of sectors of different categories

Advertising-intensive (Type 2A)
Oils and fats Dairy Products Fruit and vegetable products
Confectionery Animal foods Other foods
Distilling Wine and cider Beer
Soft drinks Tobacco Toys and sports
R&D-intensive (Type 2R)
Chemicals Man-made fibres Machine tools
Textile machinery Transmission equipment Rubber
Computers and office mach. Insulated wires and cables Electrical machinery
Electrical equipment Telecom and measuring equip. Electric lights
Motor vehicle parts Railway stock Cycles and motor cycles
Aerospace Measuring instruments Medical instruments
Both advertising-intensive and R&D-intensive (Type 2AR)
Paint and ink Pharmaceuticals Soaps and detergents
Tractors and agricultural machines Radio and television Domestic electrical appliances
Motor vehicles Optical instruments Clocks and watches
Neither advertising-intensive nor R&D intensive (Type 1)
Iron and steel Steel tubes Non-ferrous metals
Clay products Cement Concrete
Glass Ceramics Metal structures
Boilers and containers Food and chemical machinery Mining and construction machinery
Shipbuilding Meat Products Fish products
Bread and biscuits Sugar Wool
Cotton Flax and hemp Knitting
Carpets Misc. textiles Leather products
Clothing Wooden structures Other wood products
Paper and pulp Printing and publishing Plastics

Trading Position as of 2016

Irish exports to UK UK exports to EU
Beef 100 45
Dairy (8-digit level) 87 128

Revealed Comparative Advantage in the EU market for Beef products of trade category HS 020130, 2016

Ireland 14.06
UK 1.01
Netherlands 2.56
France 0.33
Germany 0.44
Italy 0.52

Dairy export breakdown by destinations at CN8 level, 2016 (€ million)

Source UK Ireland Rest of EU Intra EU Extra EU Total
Ireland €859 €1,178 €2,037 €1,954 €3,991
UK €533 €722 €1,255 €564 €1,818

Irish export price of beef products of trade category HS 020130 as percentage of UK export price

Market 2012 2013 2014 2015 2016
Netherlands 95 110 93 115 103
France 77 82 70 73 78
Italy 114 111 109 111 120
Germany 132 121 135 128 138
EU28 107 100 103 114 113

Destinations of Irish Beef and Dairy Exports, € million, 2016

I II III IV
Exports to UK Intra-EU28 exports (including UK) Extra-EU28 exports Total exports (Columns II + III)
Irish Beef Exports 983 1,897 142 2,040
Irish Dairy Exports (6-digit) 680 1,312 455 1,768
Irish Dairy Exports (8-digit) 859 2,037 1,954 3,991

Top three UK intra-EU dairy export categories (at 6-digit level)

% of UK intra-EU dairy exports Irish RCA Dominant RCA countries with sizeable dairy herds among the EU27
040690 21 2.32 Denmark (2.92); Ireland (2.32)
040120 16 0.27 Austria (2.51); Denmark (2.51)
040610 14 0.57 Denmark (6.42); Italy (2.15)
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