Valencia prepares for ‘no deal’
“The exit of the UK without a deal is now the most probable scenario”
WITH both the EU and the UK admitting earlier this month that little progress is being made in the Brexit trade talks, the Valencia regional government is discussing a ‘probable exit without a deal’ with business leaders.
Director general for internationalisation, María Dolores Parra noted that the British government has published a list showing import duty that would be paid in such a scenario after December 31, which includes 16% tax on the shoe industry and 10% on the region’s cars.
Two weeks ago regional councillor for agriculture Mireia Mollà called on the national government to intervene after it was announced that citrus fruits such as satsumas and clementines would be hit by 16% duty.
This week Sra Parra stated that her government would ‘voice the Valencian position’ in Madrid and Brussels.
She noted that she had met with chamber of commerce representatives and other business leaders.
After the discussion, she said: “The exit of the UK without a deal is now the most probable scenario principally due to the continued differences on fishing, financial products and fair competition between companies.”
She admitted that exports to the UK were ‘strategically important’ for the Valencia region.
Sra Parra noted that Britain is the third most important destination for the region’s exports, accounting for 8% of the total.
A total of 47% of these exports are from the car industry, with citrus fruits in second place (9%).
Sra Parra added that 30% of rice exports go to the UK, 17.6% of tomatoes and 14.4% of onions.
She noted that situation for car manufacturing was the ‘most worrying’. All the latest information has been passed on the business leaders, she stated, ‘so they can carry out a detailed study’ on how it will affect them.
The latest round of Brexit talks started on Monday and was due to finish as Costa Blanca News went to press yesterday (Thursday).
No statements had been released by either side at that time but Downing Street insiders noted that that talks had been constructive but acknowledged that ‘significant differences’ still remain.