In the last report we discussed the looming threat of US tariffs on EU dairy products because of the row over Airbus subsidies. The dispute has escalated since then and we now have the threat of an all-out trade war which could significantly affect market prices.
The tariff of 25% on EU dairy products imported into the US was implemented in October. This seems to be a protectionist measure taken by the US government to protect Airbus’ main competitor Boeing and also help American dairy manufacturers who are losing significant market share against European companies. France have also proposed a 3% digital services tax on large tech companies who have offices in France and have at least €750m revenue worldwide. The US government are not happy as this is perceived to be a tax aimed at large American multinationals such as Google, Apple, Facebook and Amazon and they have launched an investigation into the tax.
As a retaliatory measure the US are now threatening to double tariffs on all French imports so there is a threat to French dairy exports of a whopping 50% tariff! As we have seen in similar disputes with China the US are not afraid to use their economic might to impose tariffs on imports to leverage their position in trade arguments. The EU is standing firmly behind France in the dispute with EU trade commissioner Phil Hogan stating that ‘Digital taxation is not a French issue. It’s a European issue’. The tariffs on EU dairy products have already caused pain to EU exporters with popular Irish brands such as Kerrygold and Dubliner bearing the brunt of the costs. It looks like neither side wants to give any ground in the US-France dispute and if the EU is now weighing in it could lead to more trouble ahead with a volatile US government. The US is an extremely important market that is growing for EU manufacturers so if they have to incur any further costs we could see a ripple effect on general dairy prices. Unfortunately relations between France and the US seem to have deteriorated drastically since the French gifted New York with the Statue of Liberty!
Catherine’s role is Technical Assistant and she is one of the newer members of the Ingredient Solutions team. Catherine recently graduated in Food Science and Innovation at WIT and is motivated, positive and enjoys working in a team. Catherine says, “I always see the good in every challenge that approaches me as they can lead to opportunities to learn more.” She is looking forward to focusing on the areas that she can control and learning how to perfect them.
Ted is the Factory Manager, he is the man that keeps everything running smoothly, supporting production and technical operations. He ensures that all the machinery within the factory functions at maximum efficiency and is properly maintained.
Suma has worked for Ingredient Solutions for two years as Technical Manager – leading the technical team. Before working for Ingredient Solutions, Suma worked in Asia, the Middle East and Europe and has over twenty years experience in management and leadership in food and other industries.
Pina is our UK Sales Support Administrator and has worked for Ingredient Solutions since 2012. She works alongside Gary Davies and the sales team providing them with sales information and supporting the team especially when they are on the road. Pina works remotely for Ingredient Solutions from her base in Luton in the UK.
Marek is based near Lublin, that’s not a typo we don’t mean Dublin, he’s our man on the ground in Eastern Europe.
