It is hard to get away from the word ‘tariff’. We hear it day in and day out on the news.
Last March and April, when Brexit negotiations were the main topic of the news, the big issue was what tariffs would be placed on imported and exported goods to and from Britain and the EU. When an extension to the Withdrawal Agreement was granted by the EU, Brexit was put back into the second category news story. But that wasn’t the end of the word ‘tariff’ - Donald Trump was determined that this word should remain in the media. It was not long afterwards he decided to impose increased tariffs on certain Chinese goods imported into the US.
What effect has the Chinese/US trade dispute got to do with the agri and sportsturf equipment sector in Ireland? No one really knows. This trade war dispute may seem to be between the Chinese and the Americans but when you look at it more closely, some of the machines we import come from US parent companies. Thankfully, many of them have manufacturing facilities based in Europe, which should soften the impact of increased tariffs.
The fact that US machines are manufactured in Europe should not be a reason for complacency. An area I would have concerns about is the components that are used for the manufacturing of agricultural and groundcare equipment. We have seen the increased use of GPS controlled features, particularly in sprayers and fertilizer spreaders. Where does the software and technology come from that is used in these machines? Could it be possibly from China?
Meanwhile, going back to the Brexit issue (now that the European elections have taken place), the Withdrawal Agreement has already taken centre stage again and this familiar word ‘tariff’ is raising its head. A deal is not yet in sight and the possibility of increased tariffs on imported machines from the UK is ever more likely.
Ireland’s ports are preparing for increased capacity post Brexit. Last November an agreement was signed between the Irish and French ports’ associations in Dublin to look at increasing capacity on existing sea routes between Ireland and France, and consider new routes, if there are restrictions on the UK landbridge, after the United Kingdom quits the European Union in March.
Rosslare Europort, for example is at 38% capacity and has land available to expand to allow for the anticipated increase in port traffic. The port may have taken a major step closer to obtaining tier one port status after being approved by the European Commission as a border control post for the importation of any agri-food, fish or live animal products. No doubt any increased machinery imports from the EU will find their way into Irish ports (instead of coming via the UK landbridge).
There is a lot of uncertainty still to come.