ICOS have questioned the commitment of the United States to negotiating a fair and balanced dairy deal after it introduced additional duties on butter to the tune of an extra $.51 cents a kilo.

This move increases the tariff on EU butter, and in particular to us our key cooperative Kerrygold brand by almost a third.

The tariff comes into effect immediately, and affects all countries without a free trade pact with the US and will run to at least the end of December 2015.

Current tariffs on this key dairy category for Ireland now stand at a whopping $2.05 a kilo.

The US Foreign Agriculture Service officially notified the introduction of the so called ‘Special Safeguard Measure’ on the Federal Register early on last Monday morning.

ICOS have queried the move with officials both in the European Commission and also in the World Trade Organisation. While it does indeed seem to be legal, it certainly does not match the US rhetoric of opening free trade between Europe and the US, and certainly sends a bad signal in agriculture as the TTIP negotiations are set to ramp up a gear.

Kerrygold butter has been making massive strides in the United States under an ambitious strategy developed by Ornua. This no warning or no consultation imposition of a punitive tariff flies in the face of the US government’s stated positions on the matter.

This is made even more galling when the price of US butter remains incredibly robust because of improved consumer perception, in spite of recent difficulties in the world dairy market.

ICOS will remain committed to working towards dismantling of this tariff over the coming months.

By Conor Mulvihill

European Affairs Executive