The UK government’s decision to trigger Article 50 to open negotiations on the United Kingdom’s withdrawal from the EU worries many agricultural organisations in the EU and a number of MEPs (see other articles).
Copa-Cogeca, the farming and agri-cooperative organisations in the EU, fears that farmers and agricultural enterprises on both sides of the Channel will be hit hard by the impact of Brexit. “Consumers too who have up until now enjoyed a good choice of quality produce from across the EU will feel the impact”, said Copa-Cogeca Secretary General Pekka Pesonen.
The UK is a net importer of agri-food products, worth €57 billion. At the same time, 60% of UK agri-food exports (beef, lamb, poultry, dairy, cereals) worth £11 billion to the UK economy go to the EU. The UK is also a net contributor to the EU budget, Pesonen noted.
Copa-Cogeca express “serious concerns” about the potential trade and budget impact of Brexit on European farmers. The organisations expect the UK government to honour its commitments in the current EU budget framework and also towards programmes extending beyond 2020 to which it subscribed.
The organisations argue that ways have to be found to maintain the current budget of the common agricultural policy (CAP), which costs less than 1% of EU governments’ total public expenditure. “Any disruption to agricultural trade should also be avoided” state Copa-Cogeca.
CAP shortfall of €5 billion. S&D MEPs Eric Andrieu and Jean-Paul Denanot are concerned at the consequences of Brexit for European farmers and call on EU countries not to sacrifice European agriculture on the altar of future negotiations with the United Kingdom. “The common agricultural policy budget which is already feeling the strain will come under even greater pressure with the United Kingdom’s withdrawal from the European Union. Agriculture could very well be the sector most affected by Brexit”, the MEPs state in a press release. The departure of the UK will result in a shortfall of close to €5 billion and the funding of the new CAP will depend essentially on the will of the member states, they say.
Jaana Kleinschmidt, the president of COCERAL, the European association representing the trade in cereals, said she hoped that the negotiators would ensure adequate access for the UK to the EU single market “and vice versa” and would prevent the imposition of tariffs, indirect taxes or regulatory barriers that could affect trade.
“It is vital that negotiations over the UK exit from the EU allow for the animal health industry to continue delivering solutions for preventing and curing animal disease in a streamlined and harmonised way across the continent”, said IFAH-Europe (International Federation for Animal Health Europe).
CEEV (Comité européen des entreprises vinicoles) says that it must be ensured that there will be no disruption of wine trade flows between the United Kingdom and the 27 countries of the EU. The UK is only a small wine producer but it is a major consumer country (12.9 million hectolitres). In 2015, the UK was the world’s sixth largest wine consumer (source: OIV).
According to EFOW (European Federation of Origin Wines), Brexit opens a period of instability for wines from other EU member states, with regard to: access to the UK market (including future levels of taxes and duties) and the protection of our wine appellations in this market. The weakening of the pound sterling could lead in the long term to an increase in the price of wines imported from the EU. “This could lead to a loss of market, as consumption turns to more accessible wines”, EFOW says. The UK is likely to negotiate free-trade agreements with wine-producing and exporting countries. “Our competitors may have better access to the UK market in the future than our European wines”, the federation fears. (Original version in French by Lionel Changeur)