British farmers will produce more food when the UK leaves the European Union without a trade deal, a Government minister has said.
Transport Secretary Chris Grayling was asked about a claim by Sainsbury’s chairman David Tyler, who told The Sunday Times that a ‘no deal Brexit’ could result in an average 22% tariff on all EU food bought by British retailers.
Mr Grayling, who backed leave in the EU referendum, said he believed Britain and Brussels will be able to reach a “sensible agreement” on the UK’s terms of withdrawal.
He told the BBC’s The Andrew Marr Show that the EU would also be damaged by a failure to reach a settlement, but suggested home-grown produce would protect UK citizens from soaring prices.
Asked about the consequences of a 'no deal Brexit' on food prices Mr Grayling said: "It would mean producers, supermarkets bought more at home, that Brit farmers produced more, that they bought more from around the world and it would damage French producers and continental producers."
“What we will do is grow more here, and will buy more from around the world. That will be bad news for continental farmers, which is why it won’t happen. It is actually in their interest to reach a deal,” Mr Grayling said.
Hike in costs
Mr Grayling said it was not in the EU's interests to see an outcome which resulted in higher costs and new obstacles to trade, given the UK's importance to farmers across Europe.
“You may remember the brouhaha over the Walloon farmers when they objected to the Canadian trade deal. I had a look to see who their biggest customer was - it was us," he said.
“We are the biggest customers of the Walloonian farmers - they will be damaged if we don't have a deal.”
The rise in costs would come from ending tariff-free trade with the EU and reverting to World Trade Organisation rules, which would see the UK hit with tariffs straightaway of up to 40% on some beef and dairy products.
Around 70% of the food the UK imports comes from the EU.
However, Labour’s Shadow Brexit Minister Jenny Chapman said Mr Grayling’s answer was “ridiculous”.
“Rather than planning for no deal, ministers appear to be telling us to dig for no deal,” she said.
“British farmers already work incredibly hard and to suggest that they could simply grow more food is ridiculous.”
No deal Brexit
There have been increased worry of a 'no deal Brexit' after the EU's chief negotiator Michel Barnier admitted this week’s fifth round of negotiations finished without making any “great steps forward.”
The Prime Minister has also cautioned the British public to prepare for a 'no deal' scenario when leaving the EU.
The agricultural industry has demanded more details if farmers and growers are to have the certainty to plan and invest in their businesses in the future.
NFU President Meurig Raymond said: "Farmers and growers are becoming increasingly alarmed at the prospect of a “no deal” departure from the EU.
"The resulting disruption to trade, access to labour and business stability would pose a fundamental threat to the viability of many of their businesses."
'Vital'
NFU Cymru president Stephen James said it was 'vital' for the UK to remain within a customs union with the EU until a comprehensive deal with agreed.
"Welsh agricultural businesses need some certainty to plan ahead," he said.
"Farmers, processors and everyone involved in the food industry in Wales need to make decisions now with some idea as to what marketing options will be open to them in 2019.
"A 'no deal' scenario with our main trading partner is not an option for Welsh agriculture," said Mr James.
