EU and UK agree Brexit deal
EU and UK negotiators reached a Brexit deal yesterday (17 October). This Saturday, UK Prime Minister Boris Johnson will try to persuade MPs at the House of Commons to pass the deal.
If Johnson is successful, food and agricultural trade would be allowed to continue business-as-usual between the UK and EU Member States until the end of the post-Brexit transition period in 2020. Beyond this, a two-year extension until 2022 could be permitted if both sides agree.
If MPs are not persuaded this weekend, the UK will either request an extension – which it may or may not be granted – or fall out of the EU without a deal.
The agreement avoids a hard border between Northern Ireland (NI) and the EU. NI would come under the customs territory of the UK, meaning that no customs duties would be payable for a good brought into Northern Ireland from another part of the UK, unless there was risk that good would then move into the bloc.
Looking to trade, NI would continue to follow EU legislation without officially belonging to the Single Market.
EU agri-food chain representatives Copa and Cogeca, CELCAA and FoodDrinkEurope have welcomed the agreement.
“In particular, the EU agri-food chain endorses the revised Political Declaration which confirms the ambition to conclude a Free Trade Agreement (FTA) with zero tariffs and quantitative restrictions between the EU and the UK.
“Despite the welcomed commitment to maintaining customs and regulatory convergence in future, we will not be able to replicate the advantages of the EU customs union and Single Market through an FTA. However, we hope to find a solution that is as close as possible to the current customs and regulatory agreement,” noted the cohort.
A hard Brexit would have been detrimental for EU and UK farmers, food and drink manufacturers, traders in agri-food commodities as well as consumers, the representatives continued.
“Copa and Cogeca, CELCAA and FoodDrinkEurope call for the swift ratification of this deal by the EU and the UK before 31 October. Everything must be done to prevent the UK from leaving the EU without an agreement.”
In contrast, the UK's Food and Drink Federation was much less welcoming of the deal, urging MPs to 'consider' the long-term consequences deciding whether to accept the agreement tomorrow (19 October).
Ian Wright CBE, FDF CEO, insisted: “It is critical that the threat of a disastrous no-deal Brexit on 31 October be lifted."
However, he continued: "As they cast their vote tomorrow, MPs must also consider what this deal means in the longer term for food and drink, the UK’s largest manufacturing sector, and the supply chain’s four million employees.
“In our view, when compared with the deal secured by Theresa May, this deal represents a backward step in terms of securing frictionless trade with the EU. It also sets us on course for regulatory divergence from our largest overseas market on critical food safety, science and quality issues – areas where we are world-leading. Both of these will increase costs for businesses and consumers alike, and undermine the success of the UK’s food and drink industry – an industry already burdened by extensive, diverting and costly planning for a no-deal exit.”
The new protocol on Ireland/Northern Ireland and the Political Declaration on the future relationship between the UK and the UK can be found here.
Image source: GettyImages/Tanaonte