Brexit: No-deal would hit Danish bacon and butter exports to the UK, says OECD

Denmark is the largest importer of pork to the UK but that position is under threat if no deal is struck with the EU

Britons may have to get used to eating less Danish bacon and butter after Brexit, with food imports from the Nordic country expected to drop as much as 24 per cent.

Denmark is the largest exporter of pork to the UK but that position is under threat if no deal is struck with the EU, research from the Organisation for Economic Co-operation and Development (OECD) suggests.

Food entering the UK from Denmark is not currently subject to any tariffs but imports of pork and dairy into the EU from non-EU countries attract hefty charges.

A move to World Trade Organisation (WTO) tariffs after Brexit would mean the UK charging the same import duty to all countries under “most-favoured nation” rules.

That would be to the advantage of other countries such as China, the US, Canada and Brazil where production costs are lower.

US pork costs just €0.98 (88p) per kilogram to produce compared to €1.35 (£1.21) per kg in Denmark and €1.56 (£1.40) in the UK, according to the Agriculture and Horticulture Development Board (AHDB).

But US pig farmers are allowed to follow practices banned in the EU including treating animals with the controversial growth stimulant ractopamine. Studies have linked ractopamine with adverse effects in pigs, especially hyperactivity, trembling, and broken limbs.

WTO rules could cut Denmark’s total imports to the UK by 17 per cent, the OECD found, resulting in a 1.3 per cent fall in GDP in the medium term. The UK is Denmark’s fourth largest market, accounting for 7.8 per cent of exports in 2017.

Britain’s parliament is widely expected to vote against Theresa May’s Brexit deal on Tuesday, opening up outcomes ranging from a disorderly divorce to a reversal of Brexit.