The Courier & Advertiser (Angus and Dundee)
EU agri-food sector beefed up by €1bn trade deals
stUDy: Agreements with three countries hailed for boosting food exports
Trade agreements with countries such as Mexico, South Korea and Switzerland have proved pivotal to the economic success and resilience of Europe’s entire agri-food sector.
That was the conclusion of a new independent study, carried out on behalf of the European Commission, which revealed trade with three principal countries alone had bolstered food exports by in excess of €1 billion euros.
The pre-Brexit study, carried out on behalf of the Commission by the independent consultancy Copenhagen Economics, said Europe’s fundamental trade deals had helped to significantly increase agricultural sales and jobs right across the agri-food sector.
“Trade deals, done right, are a force for good for our farmers and food producers,” said the EC’s Commissioner for Trade, Cecilia Malmström.
She said the study provided a platform from which Europe can now continue to cut “unnecessary red tape” and get “rid of barriers” in its trade negotiations in future.
According to the Commissioner for Agriculture and Rural Development, Phil Hogan, Europe’s agreements with Mexico, South Korea and Switzerland were not only of considerable export value but supported approximately 20,000 farming jobs as a direct result.
“These three agreements alone have also raised value-added in the agri-food sector by €600 million,” Mr Hogan said.
“Just as importantly, this increase in exports has supported thousands of jobs in total across the EU, most of which in the agri-food sector, including in primary agriculture.
“These figures are clear evidence that ambitious and balanced trade deals work for European food and farming.”
The study also showed the agreements buoyed trade in both directions, with increased EU exports and increased imports of products from Mexico, South Korea and Switzerland, giving EU consumers and business greater access to agri-food products.
Following Brexit, outside the EU, the UK will need to strike new deals in order to maintain free trade with both remaining EU member states and countries with which Europe currently has free-trade agreements, including countries such as Norway, Switzerland, South Africa and South Korea.
Giving evidence to the House of Lords European Union Select Committee, on the implications of Brexit for Scotland, NFU Scotland’s chief executive Scott Walker recently stressed the importance of trade deals and ongoing access to markets for Scottish produce.
“I believe, based on our record, we can support jobs and grow income but only if negotiators prioritise agricultural production and back our successful food and drink industries,” said Mr Walker.
As part of that future, Mr Walker said NFUS believes Scotland’s farmers need continued access to important European markets.
“Other markets across the world offer opportunities but this must not be at the expense of our trading arrangement with Europe,” he added.
According to NFUS, next to the rest of the UK, Europe remains the largest destination for Scottish food exports and presents a market that offers a “genuine opportunity for expansion”.
Mr Walker said: “It is of utmost importance to the Scottish agricultural industry that the Prime Minister achieves her stated objective of a bold and ambitious free-trade agreement with the EU.
“We want barrier and tariff-free trade with Europe as well as Brexit bringing the freedom to set our own appropriate bespoke rules at a UK and Scottish level for farming, and food and drink.”