Trade talks with US under way

The UK Government has opened negotiations with the United States on a post-Brexit trade deal.

The minister responsible, Liz Truss, has claimed the US was Britain’s biggest export market, and while that may be true for a single country it is dwarfed by trade with the EU 27.

She pledged to maintain food quality standards, but it is hard to see how that could be acceptable to the US.

The talks are taking place against the background of a US economy devastated by coronavirus and with an administration focused on Donald Trump’s re-election plans.

The UK Government’s political aspirations are pinned on a deal with the US. However, as far as farming is concerned, it would be largely a oneway trade, with the EU 27 offering better and more profitable long-term prospects.

First major policy divergence

The European Commission is calling for a delay to the UK’s final departure from the EU because coronavirus is making trade negotiations impractical.

It is, however, not applying the same logic to its own plans to green EU 27 farming and food via its Farm To Fork strategy.

With the industry in turmoil across Europe, and prices falling rapidly, farm lobby organisations have sought a delay, applying the same logic Brussels has to its negotiations with London.

However, the commission has refused to bend, insisting the policy will be ratified within a few weeks, despite implementation of a new Common Agricultural Policy being delayed for at least a year.

This will be the first evidence of a major difference in approach between UK and EU farm policy, and the

greener approach of Brussels could drive more farmers to see merit in Brexit – if a trade deal can be agreed.

Call for milk production curbs

There are some signs that market forces and the private storage scheme for beef and dairy are beginning to stabilise markets. However, that stability is about stopping prices falling even further and faster rather than providing returns capable of supporting a profitable industry.

Across the EU, the radical European Milk Board (EMB) is calling for tougher action and wants curbs on milk production to force processors into higher prices.

It claims farmers in seven member states have agreed to adopt this plan. But it remains to be tested how deep support for the EMB policy is, and more crucially whether it can persuade other member states to take part.

Picture: 10 Downing Street/Crown/PA. Liz Truss and US trade delegates in a video conference.