VALUE OF BRITISH PRODUCTS

THE PRESENT

The UK has access to the European Single Market, one of the benefits of which is that we can import from and export to EU countries without having to pay tariffs. In 2014, British companies sold £515 billion worth of goods and services to foreign buyers (of which £18 billion was food and drink), with £229 billion (44%) of those earnings coming from countries within the EU6. Of all the food consumed in the UK, 76% is home grown7.

CONCERNS

Once we leave the EU, it could become harder to trade with Europe, which will have a significant impact on our economy. A ‘soft Brexit’ would offer some continuity, as we would be bound by certain EU rules in exchange for access to the Single Market, in the manner of Norway and Switzerland. But a ‘hard Brexit’ will mean cutting ties fully with Europe to focus on trade deals with America, Russia, China and Commonwealth countries. Such deals take a long time to establish and, standing alone, the UK may not be able to negotiate terms as favourable as many hope. Trade deals with the US and other major food-producing countries also risk the UK market being flooded with cheap food produced by large-scale farming.

POTENTIAL BENEFITS

Hard Brexit British trade deals with superpowers such as America and China may potentially stimulate economic growth and increase exports. EU State Aid rules also prohibit the use of taxpayers’ money to promote a British business if it impacts negatively on similar businesses in Europe. Without EU restrictions it may be possible to promote British products more easily.