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<p>We have been meeting regularly with the food and farming sectors across the UK
to understand and anticipate the potential impacts of a no deal scenario on our agri-food
industry. The UK is a net importer of dairy but there are specific products of which
we are net exporters. These may face tariff and non-tariff barriers to future EU export,
and this will have a larger impact on Northern Ireland where they are heavily reliant
on the Irish market. For wheat, for the last few years the UK has been a net importer,
but it’s likely that this harvest will see us becoming a net exporter. MFN tariffs
on wheat into the EU are extremely high, however, there is an underutilised tariff
rate quota.</p><p> </p><p>We currently import around 2/3rds of our bioethanol, mainly
from the EU. The UK alcohol industry, particularly gin and vodka, is reliant on EU
bioethanol. Bioethanol is also a vital processing aid in the production of food flavourings
and colourings, household and industrial cleaners, toiletries, cosmetics and medicinal
agents. Ethanol is a globally traded commodity and we do not anticipate any shortages
as a result of our exit from the EU.</p>
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