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It's Not Just Bankers - UK Farmers Also Face Brexit Confusion

Published on Feb 19 2018 12:00 PM in Supply Chain tagged: Brexit / UK Trade / UK Agriculture

It's Not Just Bankers - UK Farmers Also Face Brexit Confusion

Spare a thought for British farmers after the country’s exit from the European Union.

“Brexit will inevitably introduce friction to trading routes,” the House of Commons’s Environment, Food and Rural Affairs Committee said in a report calling for more funding to help food producers prepare and adopt policies.

Prime Minister Theresa May is running out of time to unite her Conservative Party around a plan for Brexit, with ministers split over how close the UK should remain aligned to the EU after it leaves the bloc in March 2019.

Those seeking a complete break from EU rules want the UK to be able to sign new trade deals with non-EU countries, though critics say that risks accepting lower standards in key industries including agriculture.

Agricultural Trading

The EU is the UK’s biggest agricultural trading partner accounting for 60% of Britain’s exports and 70% of its imports, according to the report.

The UK’s food and farming industry generates more than £110 billion a year and employs one in eight people, it said.

If Britain leaves the EU without a free-trade agreement, its trade with the bloc would revert to World Trade Organization tariffs that are higher for agriculture than for other goods and services, the committee said.

The committee warned against diluting standards to reach deals: “ Brexit should be an opportunity to improve, not undermine, our global reputation for quality.”

The committee also said that setting tariffs too high would raise costs for consumers, however, removing them could put many farmers out of business. It added that the government must say how it will ensure IT systems and infrastructure are ready for the smooth trade of agriculture produce.

News by Bloomberg, edited by ESM. Click subscribe to sign up to ESM: The European Supermarket Magazine.

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