Prepare for two years of Brexit uncertainty TRADE AND MARKET I NG There are a lot of very complicated negotiations ahead over the next two years and those on both sides should be prepared for an interesing ride. The UK levy-paying organisation The Agricultural & Horticultural Development Board has made an assessment of future trade relations between the EU and UK. It has the following conclusions: • Three-quarters of seed potato exports are to non-EU countries and EU agreements give tariff-free access to important markets • UK-produced processed frozen products are currently uncompetitive on price with EU imports but the situation could change if tariffs are imposed • Crisps are a growth exports market but currently trade is predominantly with EU countries and could be affected if tariff-free access is lost • Relationship with Israel will determine new season availability of fresh potatoes • Any additional phytosanitary controls imposed on fresh and seed potatoes could impact exporters’ profitability Labour and regulation uncertainty Although future UK/EU trade agreements will be crucial to Brexit talks, there is still a lot of uncertainty about two other crucial issues – future labour arrangments and legislation. The freedom of movement of people within the EU has meant that 3.2 million from the EU have settled in the UK either to work, study or live with 1.2 million British people moving to the EU. One of the first things to be decided with Brexit negotiations is the status of these two groups. It is hoped that anyone currently living in either the UK or EU will be given the right to remain, but that is not definite and has caused concern amongst both groups. UK farmers have also raised their concerns saying that without more than 100,000 EU workers the UK’s farms would not be able to operate. There are also estimates that nearly 40% of workers in UK food manufacturing come from the EU. The status of these workers is also uncertain and will feature in Brexit talks. Some UK farmers voting for Brexit did so in the hope they would be freed from the restrictions of EU regulations. They might be disappointed. The UK will absorb all EU rules into to its own rules when it leaves the EU, before changing them over many years. Rules over the use of some agrochemical products and the introduction of new products, such as GM potatoes, could be changed by the UK, but that could mean that British potatoes and products are banned in the EU as they will be grown using technology that is banned in the union. There are a lot of very complicated negotiations ahead over the next two years and those on both sides should be prepared for an interesing ride. Cedric Porter is co-editor of weekly market briefing World Potato Markets – www.worldpotatomarkets.com. He is also publishing a monthly Brexit briefing – www.brexitfoodandfarming.com. Cedric is speaking about Breixt and potato industry at the Europatat Congress in Antwerp (June 15-17) www.europatatcongress.eu ● Potato World 2017 • number 2 51 Pagina 50

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