The British food industry is preparing for unknown tariffs, trade restrictions and general chaos as the deadline for a Brexit deal approaches.
The United Kingdom and the European Union have been conducting trade as though the UK is still an EU member, even though it voted in 2016 to pull out in a “Brexit.” That withdrawal became effective in January, but the two sides agreed to maintain trade on a no-tariff, no-restriction basis until the end of this year while negotiations continue.
Those negotiations are foundering on several points, including fishing rights and dispute settlement procedures. As a result, food importers and exporters in the UK are nervously eyeing the calendar without knowing exactly how their businesses will be affected.
"How on earth can traders prepare in this environment?" Ian Wright, CEO of the Food and Drink Federation, told members of Parliament, according to BBC News.
The problem, Wright said, is that there is no clear information about how either border checks or tariffs will apply in individual cases. It’s significant because the EU accounts for almost half of almost all of Britain’s exports and imports.
As a result, British food exporters are looking at average tariffs of 22%, with lamb, a major British agricultural commodity, facing a 40% tariff. There will be an impact on British consumers also, especially for items like off-season produce. The minister for the environment was quoted by CNN as saying that food prices across the board may rise as much as 2%.
