On this week’s audio report from the U.S. Meat Export Federation (USMEF) , Economist Erin Borror discusses the near-term and longer-term impact of the so-called “Brexit” referendum, with voters in the United Kingdom choosing to leave the European Union (EU), on global meat trade.

“Our biggest concern presently is the impact on currencies, and we know with uncertainty there is generally a rush to the safe haven, which is still the U.S. dollar, and also the Japanese Yen. So in the very short term, the Yen has strengthened,” said Borror in the report. The other big impact was on the Euro immediately. It had been trading around $1.13 for the past couple of months, and it’s now closer to $1.10, and that helps our big competitors on the pork side, and gives them additional tailwind on those pork exports out of Europe.”

Borror also notes that most of the UK’s beef and pork imports currently originate within the EU, and it remains to be seen how the UK’s departure will impact these imports. Trade between the UK and EU, including decisions on tariffs, sanitary and phytosanitary (SPS) measures and other issues, will be the subject of extensive negotiations that are expected to take about two years.

Listen to the full audio report here:
USMEF Report on Potential Impact From Brexit