Trade, tariffs and connectivity essential to the future of farming
AN INCREASING amount of my schedule is currently occupied by the Trade and Agriculture Commission.
As the list of people and organisations making up its membership suggests there is a wide range of interests and views on the committee. It is crucial that farming has a seat at this very important table to give us the best possible chance of shaping outcomes and seeing sense prevail. Recent events in the news have underlined, once again that it’s vital that we have proper parliamentary scrutiny of all free trade agreements. Promises have been made and now it is vital that they are delivered. It’s simply not acceptable for these trade deals to be rushed and suffer poor outcomes as a result.
We are going into a crucial and defining period for our country but there remains a polarisation of opinion across a range of issues. I feel that now more than ever there will be a need to focus on pulling together and delivering positive outcomes beyond merely the next electoral cycle.
The eighth round of negotiations on the UK-EU future relationship have concluded and we appear no closer to reaching an agreement on our future trading relationship with the EU. Given the difficulties, the sticking points and the limited time we have left to strike a deal, the prospect of leaving the transition period at the end of the year with “no deal” is increasing, something which will mean huge difficulties for our sector as our exports to the EU will immediately be hit with hefty tariffs as well as non-tariff barriers.
Recently, I have been hearing politicians referring to the possibility of us having an “Australia-style” deal or an “Australia-style” relationship with the EU. When such statements are made, the leap in logic people are being invited to make is that Australia must have a trade deal with the EU, perhaps something that sits somewhere along the spectrum of trade deals that the EU has struck with other third countries such as the “Canada-style” deal or the “Norway-style” deal. However, this is not the case. Australia does not have a trade deal with the EU.
When politicians speak of an “Australia-style” deal with the EU, what they mean is trading with the EU on WTO terms, and all that goes with that, including very significant tariff and non-tariff barriers. In fact, if the UK were to leave the transition without a deal with the EU, then our position would compare even less favourably to that of Australia, which does actually have an annual quota for exporting high-quality beef to the EU of around 7,000 tonnes at a 20% tariff and around 19,000 tonnes of sheep meat at 0% tariff – with “no deal” we would not even have that, and would face the full force of WTO tariffs from day one.
Another issue highlighted as a result of coronavirus is the importance of connectivity. We desperately need improved broadband and mobile phone connectivity in rural areas. The Covid-19 crisis has seen so many people working from home and has only further highlighted the haves from the have-nots when it comes to digital communications. It’s simply not acceptable to be second-class citizens in both mobile and broadband provision.
On the subject of the internet, I ask all Welsh upland farmers, those farming in Wales’ 80% of LFA, to go on to NFU Cymru’s website and complete the Welsh Upland Farming Survey. The survey closes at the end of September and is available in Welsh or English. It only takes 10 minutes to complete. At a time when so many are having their say on what the future should hold for the Welsh uplands, at NFU Cymru we think that those people living and working in these communities should be the ones to shape their future.
With Brexit, changes to policy and the impact of coronavirus all likely to have an impact on our industry in the short, medium and long term, it’s absolutely vital that our industry speaks with a united voice. I implore you all to fill out the survey and then to encourage a friend, family member or neighbour to do the same.