European Free Trade Agreement 'vital' during Brexit transition, agricultural industry says

The Agricultural Industries Confederation Board (AIC) has said a European Free Trade Agreement is vital during the Brexit transition.

Given the complexity surrounding agricultural trade arrangements, the AIC believes a priority in Brexit negotiations is to set the framework to allow a detailed Free Trade Agreement with Europe to be negotiated during a tariff free transition period.

This was the overriding message coming from the AIC Board meeting on 5th April.

A joint letter to the Prime Minister, signed by the NFU amongst others, also said that a bilateral free-trade agreement with the EU that delivers two-way tariff-free trade is vital to avoid costly customs duties.

Last month, Parliament approved the Brexit Bill, paving the way for the exit of the United Kingdom from the EU.

The farming industry, rural businesses and organisations have spoken about their wants, needs and beliefs over the process.

'Complexities and sensitivities'

“We recognise that agriculture has both complexities and sensitivities, in terms of both imports and exports - which will require time and space to resolve”, said AIC Chairman Nick Major.

“An FTA negotiation would ensure all aspects are dealt with properly and fairly.

“We understand there is a willingness from the Commission to adopt this approach, which we believe offers an opportunity to deliver positive outcomes for the sector both within the UK and the rest of the European Union.

“Like many organisations, AIC is engaging widely, not only with its UK stakeholder base but also with its five European trade associations (CELCAA, COCERAL, European Seed Association, FEFAC and Fertilizers Europe).”

'High quality produce'

Mr Major continued: “On both sides of the Channel we have met with a very constructive and determined attitude that business is best served by a trade agreement which offers continued access to UK and EU markets for a range of products which are of high quality; known provenance and familiar to the customer base.

“As the negotiation period begins, we are encouraged to hear from Commission sources of a real desire to negotiate a constructive outcome for agriculture which delivers the mutual benefit business is seeking.”

The Agricultural Industries Confederation (AIC) has over 260 Members in the agri-supply trade and represents £8.0 billion turnover at farmgate.

It represents a number of sectors within the agrisupply sector including: Animal Feed; Crop Protection and Agronomy; Fertilisers; Grain and Oilseeds; Seed.