The British Meat Processors Association (BMPA) warns Prime Minister Boris Johnson that £1.2 billion of annual meat exports are at risk if he does not quickly reach an agreement with the EU on a trade deal.
The meat processors also state that thousands of jobs are at stake if the British do not get their affairs in better order within three months. Previously, British agricultural organizations, car manufacturers, transport companies, and the food industry have expressed similar concerns.
In a strongly worded press release, the meat processors respond to the announcement that Prime Minister Johnson wants to backtrack on previously agreed arrangements with the EU regarding the United Kingdom's departure from the EU.
The Political Declaration agreed that after Brexit, EU rules would remain in force in the British province of Northern Ireland to avoid the establishment of a true, hard border with the Republic of Ireland. It was specifically agreed at the end of the Northern Irish civil war that such a border would never return. In that scenario, England, Wales, and Scotland would leave the EU, but Northern Ireland would not.
The working arrangements on the mutual continuation of imports and exports were to be formalized by Brussels and London in a trade deal. Negotiations have now been ongoing for eight months with little success and are threatened with complete failure due to Boris Johnson's "backtracking."
If that happens, the UK will exit the EU without a trade deal, meaning that from January 1, global WTO rules will apply to all trade between the UK and the EU. And WTO rules stipulate that mutual customs duties must be paid on virtually all services and goods.
In that case, the British meat industry would face, for example, tariffs of forty percent on beef or thirty percent on dairy products. Four months ago, the British government first hinted that imports and exports with the EU would not continue so quietly and smoothly, and that some products would sometimes require a small customs duty.
It now appears that in three months’ time, there may always be substantial tariffs on all products. Prime Minister Boris Johnson has said that a trade agreement with the EU must be reached by October 15, and he claims that if it does not happen, both parties "must accept that and move on," adding that this would be a "good outcome" for the UK.
Minister George Eustice (Foreign Trade) took a similar position and suggested that a no-deal outcome, without an EU trade agreement, with WTO tariffs—for example, 40% on beef exports—would be a "good deal" since the United Kingdom would then become independent of the EU.
However, the BMPA stated that the reality is many important issues remain unresolved. "Preparations for Brexit are proceeding at a snail's pace, and the British government's ‘Brexit Report Card’ shows some glaring weaknesses in an export system that is about to become massively overloaded," said the association.
BMPA chief Nick Allen said the meat processing industry has lost its patience and called on the government to resolve these issues before it is too late. "With less than four months to go, Great Britain has a lamentable lack of infrastructure and personnel to operate the new export system. If this is not addressed, it will result in enormous delays, extra costs, and lost orders."