German farmers urge EU to strike soft trade deal with UK

The German agri-food industry exports a huge €4.5 billion of goods a year to the UK
The German agri-food industry exports a huge €4.5 billion of goods a year to the UK

German farmers worried over the impact of hard Brexit on profits have urged the EU to strike a soft trade deal with Britain to avert losses.

The German Farmers’ Association (DBV) fears that its agri-food trade balance with the UK could drop by half if no agreement is reached at the end of the 2020 Brexit transition period.

The lobby group is concerned that farmers' profits could be significantly impacted by tariffs, customs checks and new red tape.

Figures show that the country's agri-food industry exports €4.5 billion (£3.8bn) of goods a year to the UK.

On the other hand, the United Kingdom exports only €1.3 billion (£1.1bn) to Germany.

Speaking to The Times, DBV vice-president Walter Heidl said Brexit makes 'trade difficult and new expenses arise'.

“It costs time and money for everyone involved. We need to ensure that the consequences for British consumers and German agriculture are cushioned through the trade deal.”

Mr Heidl added that a hard Brexit would be as bad for UK consumers as it would for German farmers.

Each year, Germany exports €620m worth of grain, €370m of baked goods and €35m of beer to the UK.

The DBV also raises concerns over the 'Brexit gap' - a possible shrinkage in the bloc's farm subsidies budget once the UK leaves the EU.

This could lead to a severe cuts in the payments to German farmers, even though Germany would have to contribute more in funds to Brussels, Mr Heidl said.

“[Britain] was up to now a net contributor to the EU budget. The other member states are going to have to provide significantly more money,” he told the paper.