The United Kingdom has descended into total chaos in the lead up to their official exit from the European Union, and if the country exits without a deal, then it is likely that the entire economy is going to plunge into chaos. Plenty of experts have spoken about the disastrous effects a no deal Brexit will have on all sectors, and it will also have a negative impact on UK’s main trading partners. In a new development, the agriculture minister of Ireland has stated that the sector is going to be given a hefty aid so that participants can get over their losses. In the event of a no deal Brexit, fresh tariffs are going to be imposed in the UK, and once that happens, the agricultural sector is going to suffer significant losses.

The agriculture industry in Ireland is valued at 3 billion Euros and remains a bedrock of the economy. Some of the most important products include livestock and beef. However, according to the Irish Farmers Association, the sector stands to lose a staggering 800 million Euro every year once the World Trade Organisation tariffs kick in and there are fears that the entire industry could be on the verge of ruination if that happens. Considering the fact that more than 50% of all beef exports are sent to the UK, the beef industry is all set to be in major trouble.

The agriculture minister Michael Creed stated that the Irish government is going to provide aid to the industry in the form of grants as well as intervention, when possible. In addition to that, the chaos regarding the demand and supply gaps of these products is going to create storage issues as well. The government has decided to intervene with Private Storage Aid as well (PSA). Last but not least, Creed went on to the state during an interview that the country will also appeal to the European Commission and seek to get more aid under the provisions of the Common Market Organisation. He said,

“We are very satisfied that the Commission recognizes the necessity for that and we have a substantial package. What we have also secured is the ability of the Exchequer here under state aid rules also to intervene.”

The UK’s exit from the EU is now the biggest economic issue in Europe, and there are genuine fears that the country might make an exit without a deal.

Janice Pietrzak is a passionate finance professional who holds dual degree with specialization in Business and Journalism. She has experience of over a decade working in the finance sector as a financial news reporter. After years of reporting on forex, recently she has joined FinanceTwenty team as a news editor. In her free time, she loves to get deep knowledge of blockchain.

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