Tariff-free trade deal tops farming's Brexit list

Adam Bedford, regional director of the National Farmers’ Union (NFU), agreed with the House of Lords EU and Environment Sub-Committee, which identified trade as a key area of concern for British farming outside of the EU in a report published today.

The EU is British farming’s biggest customer. About 80 per cent of the UK’s agricultural exports go to the EU.

Lord Teverson, the committee’s chairman, said: “Trade – especially with the EU – is really important for the agri-food sector. It is unlikely that a comprehensive trade deal with the EU will be negotiated before Brexit, so a transitional deal is vital to avoiding a ‘cliff edge’ for farmers.

“The Government and the devolved administrations will also need to be careful that tailored agricultural policies don’t create non-tariff barriers for UK exports.”

The report warns that post-Brexit, the UK will have to develop its own tariff schedules and negotiate new trading relations with the EU and the wider world.

UK farmers risk facing high tariffs and significant non-tariff barriers when exporting, and competition from lower-priced imports domestically, the committee said.

The committee also highlighted how the UK’s agri-food sector relies “extensively” on other EU countries for both permanent and seasonal labour and that without access to EU labour, both the agricultural sector and food manufacturers will face “severe difficulties”.

Peers said this was an immediate challenge, which the Government must address urgently as the UK approaches withdrawal from EU membership.

The NFU’s Mr Bedford said: “The report quite rightly highlights the need to secure fairness for farmers through a preferential trade deal, and the need to address the challenge of the agri-food sector’s reliance on permanent and seasonal labour – this is particularly important for the vegetable and salad production in our region.

“The report also notes that policy cannot be seen in isolation from a trade deal. That’s why the NFU is calling for a tariff-free frictionless trade deal and a domestic agricultural policy which allows farmers to build productive and profitable businesses for the future.

“Existing level of investment in farming should be maintained, and our industry now has an opportunity to work with government to create a well-funded, refreshed policy which delivers for all sectors in farming.”

Britain’s withdrawal from the EU’s Common Agricultural Policy (CAP) also requires careful handling, peers said in their report, as currently it plays a “fundamental” role in regulating and supporting UK agriculture and many farmers are reliant on CAP funding to sustain their businesses.