Tariff-free trade with EU27 should be government's 'immediate priority'

A farming union has said the "immediate priority" for the government has to be securing a trade agreement with the EU27 that is free from tariff and non-tariff barriers.

NFU Cymru has responded to the publication by the Welsh Government of its paper 'Trade Policy: the issues for Wales'.

As the paper acknowledges, the decisions that will be taken about the UK’s future trading relationships with the EU27 and the rest of the world will be significant factors shaping the future prosperity of the British farming industry.

Commenting on the document, NFU Cymru President John Davies said: “In my view, nowhere is this more true than in relation to agriculture, with around a third of our lamb crop and around three quarters of Welsh food and drink exports destined for the European market.”

Mr Davies said trade has consistently emerged as a top priority for Welsh farmers during the Brexit negotiations.

He said: “As far as I am concerned our future trading relationship must be one which gives us the full and unfettered access to the Single Market that we need, and I welcome the fact that the Welsh Government has made this call once again in today’s policy paper.”

'Shut farmers out'

The imposition of tariffs, under a no-deal scenario would impact lamb exports in particular, and under WTO rates chilled lamb carcasses would attract effective tariff rates as high as 46%

Mr Davies said this would effectively shut farmers out of the European markets.

“Whilst there has been much talk of tariff barriers and the detrimental impact that they can have on trade, I was pleased to see the policy document making extensive references to the negative impact that non-tariff barriers can have on trade, particularly in relation to exports of food,” he added.

The paper explains that when it comes to food and agricultural produce in particular, non-tariff barriers such as inspections at border posts in order to demonstrate compliance with technical regulations and standards, rule of origin, hygiene, veterinary and phytosanitary controls are all factors which increase costs and hinder trade.

'Lack of clarity'

Mr Davies said: “The paper also rightly acknowledges the damaging impact that the lack of clarity on future trade arrangements with the EU is having for business and nowhere is this truer than in agriculture where production cycles can often span a number of years.

“That is why we cannot wait much longer for an outline of what our future trading relationship with the EU27 is going to look like, if our members are to start planning for the future.”

The NFU Cymru President said that although Brexit may eventually give the UK the freedom to strike its own trade agreements with third countries other than the EU27, speaking as a Welsh farmer, the "immediate priority" for the UK Government has to be on securing a trade agreement with the EU27 that is free from tariff and non-tariff barriers, and encompasses all sectors including agriculture.