The economist reported that Britain's Department for International Trade (DIT) is looking to hire a position to secure trade deals inside and outside of the EU just after the 2019 breakup withy the EU. The DIT has been rapidly growing trade negotiators. They have increased from about 50 to over 200 since the vote to leave the EU last summer. One area that is going to be tough to navigate is agriculture. The UK will not be under the EU's tariffs on food imports. The article cites the example of oranges having a complicated protection for Spain that the UK no longer has to comply to. Once independent they can go elsewhere in the market for a 170M yr fruit import that is not grown in the UK at all. The flip side Australia and New Zealand will want to import more beef and lamb to the UK. That has UK farmers very concerned, especially in Whales where more market competition from New Zealand could ruin their lamb industry. Check out what else the article has to say Trading Places -Where should Britain strike it's first post -Brexit trade deals?
-Sacha B
You mean to tell me that Gordon Ramsey can't keep the lamb industry afloat from his many restaurants? All kidding aside, The concept of having to negotiate all this based on the singular country as a single entity is going to reduce their overall footing for price / quantity. The tariffs may have been high on these AG products but it was distributed across several countries not just the UK. The UK is in a good position to have a quality farm land but they do not have the amount necessary to support the entire country. This leads to a definite deficit in trade to bring these items in.
ReplyDeleteWell he is one of the UK's biggest exports right? Kidding aside, I agree Anthony, They have voted to leave the EU and that means things are going to be a very different. The lamb and beef market are going to get more competitive. The UK is definitely not agriculturally set up to self sustain their food supply. It's going to continue to be a big import for them. Hopefully, they will secure agreements that benefit both parties. Currently Australia is only about 2% of the UK'S export market and even less (under 1%) of their import market(according to WITS). Maybe there is some thought that Australia has been shut out of the market by the EU and by Brexit this industry( and country) wil be able to an larger impact in the UK market. Sacha B
ReplyDeleteThis is interesting how much extra time and effort will have to be utilized to secure all these agreements that the UK enjoyed under the EU. I have a feeling that consumers in the UK will be paying more for their food and other products as well. I guess time will tell if they made a wise choice or not.
ReplyDeleteThere is a Department for Exiting the European Union. Right now they are seeking a communications officer :-) and not willing to pay even 40£
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