The UK’s Food and Drink Federation has warned that a no-deal Brexit would represent a ‘grisly prospect’ for the UK’s food and drink industry, following the publication of the UK government’s first Technical Notice which advised businesses how to prepare for a no-deal Brexit scenario.
A ‘no-deal’ Brexit scenario would occur if the UK and the European Union do not sign a withdrawal agreement which establishes the future relationship between the UK and EU before the UK’s exit date at 11PM on the 29 March 2019, and the FDF has warned that this scenario could disrupt supply chains and damage the operations of UK importers and exporters.
However, the UK government stated that the publication of the technical notices has been made necessary by the approaching exit date, rather than as an indication that a no-deal Brexit is the most likely outcome, and is confident that a withdrawal agreement will be signed before the 29 March.
Despite this, the FDF was keen to stress that there were worrying indications for the food and drink industry in the notice, including a warning that UK organic produce exporters could face a ban on exports to the EU for at least nine months while new approvals for organic certifications are sought.
Food and Drink Federation chief executive, Ian Wright CBE, said: “The Government’s laudable decision to publish these Technical Notices nevertheless confirms what a grisly prospect for UK food and drink a no-deal exit from the EU would be.
“There is no sign of further progress on negotiating frameworks with the devolved administrations. There is no substantive information on mitigating the effect of ‘no deal’ on the island of Ireland, where the implications would be most significant.
“Specifically for food, today’s notice about organic food certification makes clear that UK organic exporters may face a ban on their exports to the EU for at least nine months after a no-deal exit, while new approvals for certification are sought.
“These issues apply far more widely than just to organic food – any UK food that currently displays EU marks or logos will be in the same boat.
“Moreover, the UK food industry will doubt that the Government could replace TRACES (the EU Trade Control and Expert System that tracks the entire trade and certification process for animals, food, feed and plants) with a new, comprehensive, functional UK alternative IT system in time for the end of March.
“The new burdens potentially facing food and drink exporters and importers set out today will frighten many SME food businesses.
“The piecemeal release of these notices indicates that many are not yet ready and agreed for publication.
“That hardly inspires confidence. As the consequences of a no-deal exit from the EU become ever clearer it is vital that, to protect the interests of shoppers and consumers, the Government must deliver a deal with the EU.”
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