The Scottish government has put forward a proposal for the 'targeted use' of Tariff Rate Quotas (TRQs) to achieve a balance in protecting both consumer and farmer interests in the event of a 'no deal'.
Rural Economy Secretary Fergus Ewing has written to Defra Secretary Michael Gove, telling him the need to deal 'sensibly and sensitively' with the setting of applied tariffs for imports to the UK, particularly in relation to agri-food products.
In the absence of a trade agreement between the UK and European Union, the same tariffs would apply to imports to the UK from the EU as from third countries.
For agri-food products, these tariffs could be considerable with 'potentially significant consequences' for both consumers and producers, Mr Ewing said.
As a result, he has put forward a proposal to Mr Gove for the 'targeted use' of Tariff Rate Quotas.
It comes as the prospects of a 'no-deal' Brexit edges closer as MPs overwhelmingly voted to drop Prime Minister Theresa May's Brexit deal earlier this week.
In his letter, Mr Ewing said: “In the absence of a trade agreement between the UK and European Union, it is well understood that imports to the UK from the EU would be liable for tariffs up to the levels set in the Schedule of Commitments which your Government has lodged with the World Trade Organisation.
“Similarly, UK exports to the EU would be liable for the tariffs set out in the EU’s Schedule of Commitments. For agri-food products, these tariffs can be considerable.
“A range of respected commentators, including the Governor of the Bank of England, have highlighted the consequences of this for food prices in the UK, with Mark Carney identifying potential rises of 5-10%.
“This would have a significant effect, particularly on the more vulnerable sections of our population who spend a larger proportion of their household income on food.”
Mr Ewing added: “I understand that your officials have been considering a “wide spectrum” of options to deal with this issue, although there has been little clarity to date on precisely which options are being considered.
“To assist in this process, my officials have provided to yours a proposal for the targeted use of tariff rate quotas to achieve a balance in the protection of both consumer and producer interests, as well as maintaining negotiating capital. I understand that similar thoughts on the use of TRQs has also come forward from a number of stakeholders,” he said.
