EFRA Committee has called for a fund to prepare British farming for Brexit, a specific impact analysis for each agricultural sector, plans for physical and IT infrastructure to be drawn up now, and for new trading partnerships to be explored. 

The Environment, Food and Rural Affairs Committee has launched its report, Brexit: Trade in Food.

image expired

The report focuses on the impact on different agri-food sectors of the UK having to trade under World Trade Organisation (WTO) rules in the event of no deal being reached between the UK and EU. This is particularly pertinent given the UK’s simultaneous withdrawal from the Common Agricultural Policy (the impact of which will be specifically considered by the Committee at a later date.

The report concludes:

• That the EU is the UK’s most significant trading partner and there is no guarantee that a free trade agreement will be reached.
• WTO tariffs could possibly lead to higher costs for consumers but could lead to beneficial import displacement. A liberalisation of barriers could possibly lead to cheaper imports, produced to lower welfare standards, and damage British producers.
• The agricultural industry needs clarity on the Government’s long-term vision, as reverting to WTO tariffs will have a significant impact on agriculture, given that tariffs are higher for agricultural products than for other goods and services.
• Perishable agricultural products are more at risk from lengthy customs procedures and poor IT systems.
• When setting UK tariffs at the WTO, Government should understand that removing tariffs ‘could put many UK farmers out of business and render the UK dependent on imported food.’

The Committee has recommended that the Government:

• Should consider creating a fund to support the UK’s agricultural sector as it adapts to the post-Brexit environment.
• Must set out how it will make sure that IT systems and infrastructure are in place for the import and export of agricultural produce so that businesses can continue to trade smoothly with Europe and the rest of the world.
• Should begin to develop relationships at a political level with potential new trading partners.
• Should publish a sector-by-sector analysis of the impact of Brexit before the publication of the Agriculture Bill, and publish the Bill as soon as possible.
• Should ensure that any new agreements are not to the detriment of the UK’s high animal welfare, environmental, or food standards.

• Should make clear how it will deal with potential regulatory divergence with the EU, and ensure that protected geographical indicators are retained in a similar form after the UK leaves the EU.

Neil Parish, Chair of the Environment, Food and Rural Affairs Committee, said:

“60% of the UK’s agricultural exports and 70% of its imports are from the EU. In order to safeguard the livelihoods of UK farmers and guarantee domestic food security post-Brexit, it is vital that the Government articulates its vision for protecting both. The first step in this process is creating an analysis of each farming sector before bringing the Agriculture Bill before Parliament.

“UK agriculture will need to adapt to the changed trading circumstances following Brexit, so the Government should consider putting funding in place to enable farmers to do so.

“It is crucial that the Government takes positive political action towards new trading relationships as a matter of priority.

“We should under no circumstances compromise on our world-renowned animal welfare, environmental, and food standards. Brexit should be an opportunity to improve, not undermine, our global reputation for quality.”

CLA President Tim Breitmeyer says: “This is an important and timely report. It rightly acknowledges how vital free trade between the UK and the EU is for consumers that benefit from affordable and safe food produced to world leading standards. Whatever exact form the future trading relationship takes, it must result in easy movement of goods and no new tariff barriers. Failure to achieve this will lead to increased food costs, seriously undermine our current agricultural export market, and lead to increased costs for farmers.

“MPs have rightly warned about the consequences of rushed trade deals that see the UK compromising on the rules that guarantee high standards of production, environmental protection and animal welfare.

“They have also signalled the biggest risk of all which is the concept of unilateral reduction in food import tariffs that has been advocated by some as a model for post Brexit UK trade. This would have a devastating impact on UK agriculture, start a race to the bottom for standards and massively increase the UK’s reliance on imported food.

“The report is also right to signal the importance of transitional financial support for the farming sector. Brexit will bring fundamental changes to farming, many of which are necessary and will benefit everyone in the long term. However a planned transition can help to avoid unnecessary and damaging shocks that would see farmers losing their livelihoods and with no capacity to adjust.”

Full recommendations and conclusions can be read here.