Tuesday 20 February 2018

POST BREXIT TRADE IN FOOD - SELECT COMMITTEE NOT IMPRESSED

The Environment, Food and Rural Affairs Select Committee have produced a report about the impact of Brexit on Britain's food and agricultural industries (HERE). It makes interesting reading. They were not impressed with Michael Gove's evidence and the evident lack of any kind of preparatory work. He told the committee that impact assessments on the different sectors may not be published until after the agriculture bill is published (paragraph 26) This is like coming to a conclusion before hearing the evidence.

This is what the committe thought of Gove's evidence: 

During our evidence session with Rt. Hon. Michael Gove MP, Secretary of State, and the Minister of State for Agriculture, Fisheries and Food, we were surprised to hear that Defra had not completed work on sector by sector analysis. More surprising was the admission that this work may not be completed before the publication of the Agriculture Bill. Although DexEU had produced Brexit impact assessments and made them available for Members to view, we were not impressed with the depth of analysis in the documents.

The EU is the UK’s most significant trading partner. Although the Government’s intention is to agree a comprehensive free trade agreement and customs agreement with the EU, there is no guarantee that this will occur. In the event that the UK leaves the EU without a free trade agreement, UK-EU trade will proceed under World Trade Organisation (WTO) rules. Reverting to WTO tariffs will have a significant impact upon agriculture as tariffs are higher for agricultural products than for other goods and services.

The committee though underestimate the impact of the UK becoming a third country. They talk of tariffs being applied to UK exports into the EU if we leave without a trade deal but this is the least of our problems. At least products will get access to the single market, albeit at a price. But even if we get a free trade agreement products will still face regulatory barriers and will have to pass through Border Inspection Posts (BIP) of which there are precisely none in Calais or along the Irish border. The BIPs that might be used are nowhere near large enough to cope with the extra inspections.

And these are the steps a third country exporter to the EU (as we will be after Brexit) of products of animal origin will need to take according to the report (paragraph 94):

(1) register with the EU as a third country company that is authorised to export animal products to the EU; (2) apply for relevant import licences along with documentary proof of the product’s country of origin: (3) apply and pay for veterinary certificates to show that the product meets EU public health standards; (4) notify the relevant EU Border Inspection Post (BIP) in advance of the arrival of the goods; (5) arrive at the first point of entry into the EU only at an approved EU Border Inspection Post; (6) submit the goods for veterinary inspection before the consignment is permitted to freely move on to its destination within the EU.

This will happen regardless of whether we get a FTA or not. If the EU grant us some special access they will have to grant the same access to all other third countries - so it is not going to happen.