January 5, 2021

 

UK organisations representing meat industry welcomes new Brexit deal, but voice challenges

 

 

UK trade organisations representing the interests of the domestic meat industry have welcomed the new Brexit agreement which was reached last month between the United Kingdom and the European Union.

 

However, they also voiced challenges pertaining to the agreement.

 

With concerns of a no-deal Brexit growing, to the relief of many, UK Prime Minister Boris Johnson announced that the 'Christmas Eve Agreement' between the UK and EU had been reached, ending many months of negotiations and speculation.

 

"Thus far, our members have largely steered clear of sending goods to the EU in order to avoid the predicted disruption at ports. However, this cannot continue and we expect to see a fuller picture emerge of how the new system is working over the coming days and weeks as exports resume," said a spokesman for the British Meat Processors Association (BMPA).

 

"It is worth noting that there are several complex issues that still remain unresolved and which have a major bearing on trade in products of animal origin with the EU going forward. BMPA is working closely with the relevant authorities to resolve these issues."

 

National Farmers Union president, Minette Batters said: "The successful conclusion of a deal between the UK and EU is very positive news for British agriculture. The EU is our largest trading partner and we have been clear throughout negotiations that maintaining tariff-free access to the EU market is absolutely crucial for our food and farming industry, not only for farmers' businesses and livelihoods, but for our ability to continue to provide a secure supply of quality, home-grown food for the nation.

 

"We will now analyse the details of this agreement to ensure it meets the needs of British food and farming. The tariff-free element will be a particular relief for farmers that rely heavily on the EU export market, such as our sheep farmers, as well as farmers across British agriculture that produce the safe, traceable and affordable food that underpins more than £14 billion (US$19 billion) worth of export sales each year to the EU.

 

"It does remain the case though that our relationship with the EU will experience a fundamental change at the end of the transition period and we do anticipate that there will still be disruption to trade at the border. New checks, paperwork and requirements on traders will add costs and complexity. It is vital Government does all it can now to prioritise exports of our high quality, perishable agricultural products to make sure that these products are not left languishing in queues at the border when the changes take effect."

 

Martin Morgan, chief executive of Scottish Association of Meat Wholesalers (SAMW), said: "Confirmation that a deal has been struck and has now been endorsed by both the UK Parliament and Member States in the EU is welcome, however long overdue.  For Scotland's red meat sector, the need for extra paperwork countersigned by a vet will impose further significant cost which we could well do without. Without support from the Government to absorb these costs incrementally as the supply chain adjusts to the new trading environment our hard-pressed margins, which are already buckling under the weight of COVID-19 compliance expenditure, that will run into six-figure sums for the major sites, will be wiped out.

 

"At this very early stage, it is evident than many companies that would normally export at this time of year are holding back for now and are watching with great interest, and some trepidation, as to just how the new border checks regime is being managed. On the plus side, we now have the certainty that business was desperately asking for on tariffs and quotes, so they can now plan ahead and service the needs of our customers at home and in Europe."

 

Katie Doherty, chief executive of International Meat Trade Association (IMTA), said: "IMTA welcomes the news of a deal between the EU and UK being reached, however, it came uncomfortably close to the wire for industry. A 1,300-page document is a feat to read let alone for whole supply chains to act on in just a few short days, particularly at this time of year.

 

"Confirmation that the aspiration in the political declaration for zero tariffs and zero tariffs on UK and EU goods will be a relief to many in our industry where the MFN 'full duty' is substantial. However, it is clear that digesting the ins and outs of rules of origin and its impacts on supply chains will be crucial for many companies at the start of this year. We have fielded many questions already relating to what counts as originating and what documentation is required to prove it. We have organised a briefing session for members early this week with Defra and HMRC officials to help members to navigate rules of origin.

 

"A key development not from the FTA itself but vital to the meat industry was the news that the UK has received 'third country status' approval from the EU meaning that we are  permitted to export meat to the EU after 11pm on December 31. Export health certification and entry via a border control post for vet checks will still be a prerequisite as for any third country, but it is good news for the industry that we can still export to the EU.

 

"We are working at pace to decipher the contents of the agreement for our members to ensure they are best placed to make any required actions not already taken in preparation for the end of the transition period. Beyond that, we will be looking at the agreement in more detail to identify the areas where there are opportunities to improve the trading relationship from the baseline given by the agreement. For example, there are commitments to customs cooperation and trade facilitation."

 

- Meat Management