“The implications of a divorce from the EU which does not encompass either single market access or customs union membership are potentially very damaging for UK agriculture and food production” says David Caffall, Chief Executive of the Agricultural Industries Confederation (AIC) in response to today’s speech by Prime Minister Teresa May.

“Mrs May’s speech confirms that political in-fighting over migration figures have taken priority over the economic realities of income generation and industries such as agriculture and food.  Inside or outside of the EU, Europe remains the UK’s biggest market place. The increasing spectre of tariff levels under WTO rules pose ever greater threats to our ability to continue competing in traditional markets. This, in turn, threatens the sector’s ability to generate taxation income for the UK Exchequer.

Given the Prime Minister’s signal of the likely direction of forthcoming negotiations, 
AIC believes it is even more imperative that UK government offers a lifeline to our industry through a rapid re-evaluation of the regulatory structure going forward rather than simply rolling over regulations from the EU. 

“For instance, a return to risk based analysis for plant protection products with a regulatory structure based on proper scientific evaluation must be in place the moment our disengagement from the EU takes place, says Mr Caffall.

Such moves would afford the UK industry fresh opportunity to trade with other evidence based market places beyond Europe. However, even with these moves, the marketplace will be extremely tough, as many lower cost producers already established in these third country markets.

“The Government talks constantly of opportunities, but today’s speech by the Prime Minister closes the door on existing opportunities. Any chance of realising other options requires the UK negotiating stance to place business along with job retention and creation much closer to the centre the UK ambitions for over the next two years,” concludes Mr Caffall.