NFU Cymru reacts to Brexit
NFU Cymru has responded to the UK’s departure from the EU. NFU Cymru president John Davies said: “January 31 marks our departure from the EU in legal terms and we will now enter a transition period. During the transition we will remain in the EU’s Single Market and Customs Union, and so for that time we will continue to be able to trade with the EU27 in just the same way as we did before we ceased to be a member state. I am not therefore expecting Wales’ farmers to experience any significant changes overnight, particularly given that we will also remain bound by the vast bulk of EU law during transition.
“The Prime Minister has set himself the ambitious deadline of concluding a Free Trade Agreement with the EU27 by the end of 2020. It is essential that whatever agreement the UK Government reaches with the EU27, it delivers the most favourable access possible for Welsh farmers to European markets, with tariff and non-tariff barriers eliminated wherever possible.
“We know that the transition period ends by default on December 31, 2020, although this transition can be extended by up to two years through a joint decision of the UK and the EU27 taken before July 1, 2020. However long the transition, we must avoid a situation whereby it elapses without having reached an agreement on a future trading relationship with the EU, as we know that that will mean we end up trading with our largest, most valuable export market on WTO terms, which means huge tariffs on our produce.
“For the first time in almost half a century, the UK will be able to take steps to pursue an independent trade policy, something which we could not do as an EU member state. Whilst this newfound ability does present us with opportunities, I want to urge politicians to exercise a degree of caution here and to heed what we have been saying clearly and consistently around standards. We cannot allow a situation to arise whereby our own high standards are undermined by imports produced to environmental or animal welfare standards which would be illegal in this country. Wales’ farmers must be allowed to compete on a level playing field after Brexit.
“Although Brexit will potentially open up new markets for us, we must not lose sight of the importance and value of the EU27, to which almost three-quarters of Welsh food and drink exports go. Therefore, before we turn to consider trade with third countries, we need to ensure that we have secured the most favourable possible access to the market on our doorstep.”
Commenting on developments closer to home, Mr Davies added: “Brexit does of course present us with the opportunity to pursue our own arrangements for agricultural support and, earlier this month,
Welsh Government confirmed that it will be opting to introduce its own legislation in the National Assembly in due course to allow it to operate new policies for farmers in Wales post-Brexit. Just as I have urged UK Government to take the time needed to get things right when it comes to trade, I make the same appeal of Welsh Government when it comes to developing future agricultural policy.
“Crucial to any future agricultural support policy, of course, is funding, and I was pleased to have confirmation from the UK Government at the end of last year that current levels of support will be maintained for 2020. The UK Conservative Government made a manifesto commitment ahead of the general election to guarantee the annual budget for farmers for the next five years, and we are pleased that Welsh Government has made commitments to ring-fence the funding it receives from Westminster for Welsh farming.
“Funding is crucial to help ensure that Welsh farming can continue to deliver and grow on its unparalleled contribution to the economy, environment, culture and social wellbeing of Wales. We need a long-term funding arrangement to meet our ambition to further grow the food and farming sector whilst maintaining and enhancing our environment and delivering on our own target of making the sector a net zero emitter of greenhouse gases by 2040
“As a union, NFU Cymru looks forward to working with politicians in Cardiff to devise a ‘Made in Wales’ policy which delivers against our three cornerstones of productivity, stability and environment in order to realise our ambition of a productive, progressive and profitable Welsh agricultural sector.
“In the nearer term, I am pleased that our Environment, Energy and Rural Affairs Minister Lesley Griffiths AM has signified her intention to maintain the BPS for 2020 and 2021, thus providing the sector with some much-needed stability at this uncertain time.”