The failure to reach a trade agreement between the European Union and the United Kingdom after Brexit would have serious consequences for the agro-food sector.
After the breakdown last week of the fourth round of negotiations, agricultural umbrella organizations in Brussels have expressed their concerns. Agricultural lobby Copa-Cogeca, food industry representative Celcaa, and FoodDrinkEurope told Euractiv in an initial response that the risk is growing.
Agricultural businesses must prepare for a British departure without an agreement, with additional frictions, customs barriers, and other trade obstacles, according to EU circles. In that case, the United Kingdom and the EU countries will trade according to World Trade Organization (WTO) rules with customs tariffs, including for agri-food products.
A British departure without any transition arrangement seems inevitable, Europarliamentarian Peter van Dalen (Christian Union) said Friday on the news site iede.news. “The British have even deviated from their previously agreed political commitments. This stubborn and irresponsible attitude ultimately creates losers on both sides of The Channel. This is a black day for the Brexit negotiations,” Van Dalen said.
Only top-level talks later this summer between Michel (European Council), Von der Leyen (European Commission), and Johnson (British Prime Minister) offer hope. This situation is dramatic for the Dutch fishing industry, Van Dalen said.
The British left the EU on February 1 and must indicate by July 1 whether they want to extend the negotiations by up to two years. London still says it will not do so. They demand free trade and access to the internal market for many of their popular products.
Europe wants a much broader cooperation agreement, including tariff-free and quota-free trade, but also demands that London complies with European rules for fair play and continues to give Europeans access to British fishing grounds.
According to the British press, British Prime Minister Boris Johnson is nevertheless willing to accept EU tariffs on some British goods. His offer is seen as an attempt to break the deadlock with the European Union. On two key issues, fishing and equal standards for labor conditions and the environment (food, dairy, and agriculture!), both parties have failed to reach closer agreement.