The report, entitled, “Cost of No Deal” also acknowledged that the effect on agriculture and food prices, while unpredictable, will be “large and varied”.
The report also outlines that there will be a “substantial” effect on price and availability of food for the British consumer after Brexit.
Similar to other studies, fears were also raised about Northern Ireland and the close ties with the Republic.
It found: “If a hard border is to return and if different tariff arrangements were to operate on either side of the border, this would be likely to disrupt their highly integrated agri-food supply chains and could encourage the illegal movement of animals and other goods.”
The report was published amidst ongoing talks between the British and the EU on the terms and conditions of Britain leaving the EU.
The current talks involving EU chief negotiator Michel Barnier and British Brexit Secretary David Davis are ongoing until Thursday.
Currently, Ireland place significant reliance on Britain for our food and drink export market.
If imports into Britain become more expensive as this report outlines, competitiveness of Irish exports into the UK may reduce.
The effects of this could be seen in 2016 when Irish exports to Britain reduced by 8%, with weaker sterling affecting trade.
Some 37% of Ireland’s food and drink exports went to Britain in 2016 valued at €4.13bn.