TRADE AND MARKET I NG Brexit also worries the British potato trade Egypt. These countries don’t have an import tariff for seed potatoes from the EU. If the UK is no longer able to use this arrangement, Egypt will charge an import tariff of 2 percent and Morocco one of 40 percent unless the UK succeeds in making its own arrangements with these countries. Egypt accounts for 58 percent of British seed potato exports, and Morocco roughly 10 percent (2017). Great indirect effect on consumption potatoes The UK potato sector is likely to suffer more under Brexit than the sector in the Netherlands. UK is allowed to continue to export to the EU. The EU has an import ban on potatoes for Third Countries, with the exception, for example, of Canadian seed potatoes and of consumption potatoes from a number of countries, among which Egypt and Israel. The question is whether such an exceptional position will form part of the trade agreements with the EU. British importers also fear that they will no longer have access – or to a lesser extent – to Israeli early potatoes. Importers can currently import produce from Israel at a zero rate. The question is whether this agreement will be maintained after Brexit if the UK were to move to WTO import tariffs. The British seed potato sector further fears higher import tariffs on exports to Morocco and If British seed potatoes were to fall under the EU import ban, the UK would lose 22 percent of its export volume of seed potatoes (2017). For the Netherlands, the effect is much smaller. The UK’s share in Dutch seed potato exports has been around 2.5% in recent years. The income for the Dutch seed potato trade, however, is higher than the percentage indicates. This is because a number of Dutch seed potato companies have a branch in the UK. Around 2 percent of Dutch exports of ware potatoes (2014-2017) are destined for the UK. This percentage rose to 20 percent for the 2012 harvest. Due to the high rainfall, the British harvest in 2012 was very disappointing and the Netherlands was able to export considerably more. The UK is Like Dutch agri-entrepreneurs, British agri-entrepreneurs see Brexit as a source of uncertainty. 20 Potato World 2018 • number 4 Pagina 19
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