The Courier & Advertiser (Angus and Dundee)
UK gains from buoyant global markets – for now
The EU-27 will be one of the UK’S biggest competitors for food export markets after Brexit.
A report from the European Commission confirms that an aggressive and well funded drive for more business is paying off. As a member of the EU, for now, and with the benefits of a weak currency, the UK is also gaining from buoyant global markets.
The challenge will be to secure the same success when EU trade deals have to be swapped for direct arrangements.
In November, EU agrifood exports were 12.7 billion euro. Imports were around 10 billion euro, giving a positive trade balance.
By contrast the UK is only around 60% self-sufficient in food, with a high dependence on imports even of food it can produce. Major year-on-year gains were achieved in the US, Russia and several Asian markets – all post-brexit targets for the UK. Star performers were wine, milk powder and infant formula.
The EC claims it is into the endgame in its negotiations on a trade deal with the Mercosur countries of South America.
These include Argentina, Brazil and Uruguay as major beef producers and they will secure better access to the EU on a no tariff and reduced tariff basis.
It has already been accepted by the commission that this will have a negative impact on the beef industry, but it is adamant this will be more than offset by wider gains for the eurozone from access to South American markets.
Despite optimism in Brussels that a deal is close, there are big stumbling blocks, not least opposition from farm lobby groups and at least two member states – France and Ireland – to any deal that would damage European beef interests.
The farm lobby organisation, COPA, has warned Brussels that it must not make any further concessions on agriculture.
A deal was expected before Christmas, but this collapsed because of the commission’s reluctance to offer enhanced access for beef.
France is seeking to become the first major agricultural nation to curb the use of pesticides.
This is an extension of its opposition to the renewal of the licence for glyphosate.
A campaign, led by France, saw this reduced from 15 to five years and president Emmanuel Macron has pledged to deliver a greener future for France, with a plan to eliminate all pesticides deemed harmful to people, livestock or wildlife.
A plan from the department in Paris which is responsible for agriculture, health and innovation is due to emerge by the end of March. The drivers are to determine which products are potentially harmful, what alternatives exist and what harm is being done to the environment by pesticides.
This is all part of a Macron commitment to a sustainable agricultural model in France. The challenge will be to match this to the parts of the French farming industry, for example cereals, that are highly productive and globally competitive in export markets.