European organisations across the food and drinks chain have warned an orderly Brexit and the imposition of a transition period are the only means to prevent the UK’s exit from the trading bloc from having a “huge impact” on the industry.
FoodDrinkEurope, Copa-Cogeca and CELCAA made the statement after meeting with the European Union’s chief negotiator on Brexit, Michel Barnier, as the UK and the EU edges closer to not being able to strike a deal on the terms of the country’s departure from the bloc on 29 March.
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The warning comes as UK Prime Minister Theresa May arrives in Brussels today (7 February) to seek changes to the so-called backstop agreement, a key sticking point in the negotiations, and a proposed deal that aims to keep trade flowing freely across the border between the Irish Republic and Northern Ireland.
A joint letter from the representative organisations to Barnier noted how EU farmers and food and drink companies are still faced with a lack of certainty over the Brexit process and are preparing contingency plans for the eventuality of a no-deal.
“These measures will not prevent significant disruption of supply chains in case of a no-deal,” the letter read. “It is also proving difficult for smaller operators to suitably prepare as they will be facing export procedures for the first time and they lack the required resources.”
FoodDrinkEurope represents participants across the food and drinks manufacturing industry in the EU. Copa and Cogeca is a union of farmer and agri-ccoperatives in Europe. CELCAA, the European Liaison Committee for Agricultural and Agri-Food Trade, is the umbrella organisation representing at European level associations and companies active in the sector of agricultural and agri-food trading.
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By GlobalDataThey are all calling on EU institutions to “consider unilateral contingency measures specific to the agri-food sector”.
In the joint letter, the agri-food chain representatives list a “concrete set of effective measures related to customs, labelling, food safety and transport that could soften the impact of a no-deal Brexit on businesses on day one”. It also calls on those institutions to “carefully consider making adjustments to agricultural markets as well as preparing support policies and emergency Brexit funds to deal quickly with any unforeseen events”.
The agri-food associations have also urged the European Commission to encourage member states to co-ordinate their activities to avoid disruption to trade, and in the case of the eventuality of non-compliance at borders to “ensure a level playing field for operators in dealing with customs officials”.
In 2017, EU-27 agri-food exports to the UK amounted to EUR41bn (US$46.5bn). Similar shipments from the UK to the European trading bloc amounted to EUR17bn, according to figures provided in the statement.
