Post-Brexit trade should prioritise relationship with EU, farmers say

Free trade agreements with Australia, New Zealand and US present "few opportunities" for UK farmers, and could undermine production standards at home.

In responding to the UK Government consultations on free trade negotiations with Australia, New Zealand and the United States, NFU Scotland believes that the government needs to go "back to basics" and undertake consultation with the industry to identify any opportunity in these markets.

While the three marketplaces do not present clear opportunities, there was continued concern that the UK Government is looking to negotiate Free Trade Agreements with countries which produce to some standards which would not be in keeping with the requirements in the UK.

NFU Scotland has argued that the best post-Brexit market outcome for farmers is continued membership of the European single market, to ensure frictionless trade with key markets.

NFU Scotland President, Andrew McCornick said: “If the Brexit referendum decision is interpreted as ‘taking back control’ then it’s critical the UK Government doesn’t follow up Brexit by undermining our own domestic standards in a rush to sign unnecessary trade deals with countries which produce a number of products to lower standards than would be accepted in the United Kingdom.

“Australia, New Zealand and the United States are significant global exporters of food and if they were given greater access to our domestic market then this would have the potential to increase food miles and damage local farm and croft incomes."

''Empty gesture'

The UK Government has cited Brexit as an opportunity to highlight the UK’s strong environmental and animal health credentials of food production.

However, NFU Scotland said this would be an "empty gesture" if the UK Government allowed increased imports of foods from countries where farmers are unable to directly legislate any changes to production standards.

“That would be equivalent to exporting our precious welfare and environmental standards overseas," Mr McCornick said.

“Future trade agreements with these countries may also have the potential to impact on our ability to trade freely with our customers in the European Union and this would be unacceptable."

In 2016, the UK food and drink exports to the EU were £9.9 billion while non-EU exports were £4 billion, highlighting that more than 70 per cent of UK food and drink exports are dependent on access to the European single market.

This includes over 90 per cent of the UK's beef exports, 75 per cent of pig meat exports and 88 per cent of sheep meat exports.

Mr McCornick added: “If the government is serious about opportunities for our food and farming sector post-Brexit then they should go back to basics and undertake thorough consultation with the sector to identify market opportunities.

“If they believe that Australia, New Zealand and the United States are the correct markets then I strongly suggest they go back to the drawing board.”