EU talks begin with WTO on adjusting post-Brexit quotas

POST-BREXIT trade is also getting real, as talks begin on how to divide UK and EU food quotas in the World Trade Organisation.

All WTO members have a list (or “schedule”) of certain products — mainly food and industrial goods — which can only be imported up to a certain level (quota) before higher tariffs apply.

The EU and UK agreed between themselves last year to apply the same overall level after Brexit by carving British quotas out of the EU total based on import and export data. So the total quota would remain unchanged, with the UK simply subtracting its share based on the formula.

But other WTO countries, including the US, Canada, Argentina and New Zealand, hit back at the move, saying it was unfair and would reduce their combined market access to the EU.

Negotiations can now begin with the WTO after EU governments gave their goahead last week.

But the matter is unlikely to be cleared up in time for Brexit day in March 2019, especially if other WTO members use the opportunity to try to push for increased access to EU agricultural markets.

European farmers could also find themselves under pressure from north African imports in future.

African markets

One senior EU diplomat last week floated the idea of further opening EU food markets to Africa in a bid to improve the economy and reduce the number of people migrating to Europe for work.

The diplomat said the EU’s approach should focus on “money, markets and mobility”.

“This does not come for free, and that’s okay for us,” the diplomat said. “These countries have limited access for agricultural goods to the EU market — maybe we should be more open there.”

However, EU leaders made no mention of trade last week in their summit communiqué, saying only that the bloc should “take the quality of our cooperation with Africa to a new level”.