Brexit is 'unwelcome': Scottish red meat sector under threat, according to report

Industry surveys show that over the past three years more than 95% of Scotland's international trade is with members of the European Union
Industry surveys show that over the past three years more than 95% of Scotland's international trade is with members of the European Union

The uncertainty about the impact of Brexit is unwelcome for the Scottish red meat industry, according to a report highlighting the challenges and opportunities for the Scottish red meat trade.

Industry surveys show that over the past three years more than 95% of Scotland's international trade is with members of the European Union particularly France and Italy.

"Losing duty free access to the European Union market would result in significant market destabilisation," the Quality Meat Scotland report said.

"The extreme position would be one where Scotland and the UK traded with the European Union as a non-member state and face the punitive tariff rates described above and the likelihood of significant reduction in export volumes unless there was significant price correction.

"While an agreed tariff rate quota would offer potential access at preferential terms they may not be tariff free and it would make it difficult, if not impossible, to grow exports to the EU beyond the limits of the quota."

'Considerable threat'

The Scottish red meat industry contributes around £2 billion to Scotland’s economy each year and supports around 50,000 jobs, many of which are in more fragile parts of the country.

"The information contained in this report makes clear that losing the full and free access to this market that full membership of the EU brings is a considerable threat, with UK meat exporters potentially facing punitive tariffs and substantial market disruption," said Jim McLaren, Quality Meat Scotland Chairman.

"The document also makes it clear that opportunities to build and improve market access to capture recognised opportunities outside the EU will take time and significant resource," he added.

The report said leaving the European Union would open up the opportunity for the UK to negotiate its own terms of trade with target markets resulting in the potential to increase existing access or gain access to markets currently closed to the UK and Scotland.

"However, the time taken and resources required to reach agreement should not be underestimated, neither should the time and resource required to build a market in those countries where the UK currently has no trade or limited trade."