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Europe Daily Bulletin No. 12231
Contents Publication in full By article 11 / 31
SECTORAL POLICIES / Agriculture

A no-deal Brexit would cause 'major disruption to certain agricultural markets', says Mr Hogan

"We can say with certainty" that the United Kingdom’s disorderly exit from the EU would result in "significant disruption to certain agricultural markets", said European Agriculture Commissioner Phil Hogan in Brussels on Monday 8 April. 

At a press conference, the Commissioner did not want to be alarmist. He said he really hoped "that common sense will prevail" and that an agreement on Brexit will be reached. "A no-deal makes no sense; there are too many issues at stake for all parties involved in the UK and the EU", said Phil Hogan. He said he hoped that "things will evolve positively this week in the British Parliament and we can avoid a no-deal Brexit". 

A toolbox available. On Tuesday 9 April, the College of Commissioners will discuss the agricultural measures to be taken in the event of a no-deal Brexit. Mr Hogan pointed out that the Commission had a "legal obligation to intervene". And early intervention would prevent the development of a potentially much bigger crisis in the long term. He believes that the Commission has a sufficient "toolbox" to intervene if necessary. 

The Commissioner mentioned measures in the form of public intervention, private storage aid, product withdrawal schemes and targeted aid. The Commission is also examining the state aid rules. The institution has recently increased by 66% the level of so-called 'de minimis' aid that can be granted in the agricultural sector through state aid, without notifying the Commission. 

Irish border. Commissioner Hogan said that the outcome of the negotiations in London would dictate the EU's response to products crossing the Irish border in the context of a no-deal Brexit. "If there is a customs union and regulatory alignment between the EU and the United Kingdom, we will have business as usual", he said. "If there is a no deal, we will see our responsibilities under the Good Friday Agreement to prevent a hard border on the island of Ireland". 

Customs tariffs. The Commission has updated its market access database to include the United Kingdom. This database provides information on duties and taxes applicable to exports to trading partners such as the United States and China. This update will help EU exporters cope with the new situation they may soon face. 

The Commissioner reiterated that the tariff schedule published by the United Kingdom includes relatively high tariffs on a number of animal products, such as beef, poultry, pigmeat and cheese as well as such products as sugar and rice. It is clear that a number of Member States will bear the brunt of these proposed tariffs, because of their exposure already to the UK market for those products, concluded Mr Hogan. (Original version in French by Lionel Changeur)

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