Since the UK officially left the European Union (EU), there was, initially, a political appetite in Westminster to hastily sign free trade agreements and reveal the ‘benefits’ of our post-Brexit trading arrangements.
The Farmers’ Union of Wales have clearly voiced concerns in regards to the free trade agreements with Australia and New Zealand, not least given the Australian deal is of negligible value to the UK economy as a whole.
It will inevitably result in a net reduction in global animal health and environmental standards due to the displacement of food produced by producers in the UK who are legally bound by far higher standards than those required of Australian farmers.
The UK Government’s own figures and projections estimated the agreement will increase UK GDP by between 0.06% and 0.1% (an average of 0.08%, or eight parts in ten thousand) in the long term (by 2035), leading to a long term increase in UK wages of 0.1% - an average of 60p a week based on 2019 figures.
Two years ago statements made in Parliament by the former Secretary of State for Agriculture, George Eustice, confirmed that the trade deals with Australia and New Zealand gave away massive access to the UK food market in exchange for negligible benefits to the rest of the economy - confirming everything the FUW has stated throughout.
While the UK Conservatives have committed to ensuring ‘all food and drink products imported into the UK, including those from countries we have trade agreements with, must comply with the UK’s high standards’, they have failed to differentiate between what is meant by UK import standards and UK production standards, leaving their commitments wide open to interpretation.
It is absolutely essential therefore that the next UK administration ensures that any future deals with other countries and trading blocs take a far more robust approach that protects our farmers and food security. This must include the adoption of a more transparent process, as happens in other countries and trading blocs, that allows greater scrutiny and discussion with sectors (particularly vulnerable sectors) and devolved administrations over realistic timescales and potential negative impacts.
However, while negotiations for deals with the CPTPP trading bloc, India, Canada and others continue, the UK mustn’t underestimate the importance of protecting and prioritising our relationship with the EU in order to protect UK food security and our largest export markets for agri-food products. Multiple delays of border checks on food imports from the EU compared with full controls on UK exports have resulted in an unfair and unequal trading environment since Brexit day one.
While it may be difficult for the next UK administration to renegotiate any post-Brexit arrangements with the EU, the FUW call on the incoming UK Government to ensure that both food imports and exports are subject to the same custom and standard controls which not only provides a level playing field between UK and EU producers but also restores the confidence of our trading partners.