The United Kingdom’s exit from the EU will bring significant challenges for the country’s agricultural sector, according to a report published on Wednesday 3 May by the UK’s House of Lords EU Energy and Environment Sub-Committee (see EUROPE 11779).
The report calls for a “transitional period” to allow UK farmers to survive and prosper post-Brexit.
“Life after the EU’s Common Agricultural Policy will not be easy for the many UK farmers who rely on its financial support”, stated Lord Robin Teverson (Liberal Democrat), who chaired the sub-committee until the dissolution of Parliament on 3 May. He says that the country’s withdrawal from the EU will also create opportunities: “We will be able to really think about what we want to do with agriculture, food and the environment”.
It is unlikely, in his view, that a trade deal will be negotiated with the EU before Brexit, so a transitional deal is “vital to avoiding a ‘cliff edge’ for farmers”. The government and the devolved administrations will also need to be careful that tailored agricultural policies do not create non-tariff barriers for UK exports, Teverson goes on to say.
Withdrawal from the CAP. The CAP plays a fundamental role in regulating and supporting UK agriculture. “Many farmers in the UK rely on CAP funding to sustain their businesses”, the report states, pointing out, too, that the CAP is criticised for being bureaucratic. “Brexit presents an opportunity to tailor agriculture policies more closely to the differing needs of farmers and consumers across the UK”, the report argues. UK farmers will also need time and clarity from Government to allow them to adapt to any changes in the regulatory or funding system after Brexit, says the House of Lords sub-committee.
Future trade in agri-food products. The EU will be the UK’s single largest trading partner in agri-food products: about 80% of the UK’s agricultural exports go to the rest of the EU. Post-Brexit, the UK will have to develop its own tariff schedules and negotiate new trading relations with the EU and the wider world.
UK farmers “risk facing high tariffs and significant non-tariff barriers when exporting, and competition from lower-priced imports domestically”, the report suggests. Both tariff and non-tariff barriers could disrupt integrated supply chains between the UK and the EU, and pose a particular challenge for the agri-food sector in Northern Ireland.
Access to labour. The UK’s agri-food sector relies extensively on other EU countries for both permanent and seasonal labour. Without access to EU labour, both the agricultural sector and food manufacturers will face severe difficulties, according to the report. This, it continues, is an immediate challenge, which the Government must address urgently as the UK approaches withdrawal. (Original version in French by Lionel Changeur)