The industry body representing the UK’s wine industry has warned that a clear plan is needed in order to protect the industry against the effects of the UK withdrawing from the European Union (EU).
Voters in the UK elected to leave the EU last year, and the government’s current timescale involves a ‘Brexit’ by 2019.
But the Wine & Spirits Trade Association (WSTA) has “deep-seated concerns” about the lack of vision for a post-Brexit food and beverage industry, and its chief executive has put its members’ concerns to the secretary of state for environment, food and rural affairs, Michael Gove.
Miles Beale said: “The wine and spirit industry has had enough of political posturing and cabinet rifts, which have led to a flurry of mixed messages over what we should expect from the government approach to Brexit. Put bluntly, we want government to get a grip and put to rest some of the deep-seated concerns facing our trade – by telling us clearly what they are going to ask for when negotiations get serious in the autumn.”
The UK’s prime minister, Theresa May, has consistently resisted calls to share more of the government’s negotiating strategy and has been forced into a number of concessions – including a parliamentary vote on invoking Article 50 of the Lisbon Treaty, which paves the way for a member state to withdraw from the EU.
“The WSTA has argued continually for a negotiated deal including a transition period that would allow the UK to agree a free-trade agreement (FTA) with the EU,” Beale said. “Then the government needs to make quick progress on other bilateral FTAs with our major trading partners. Such a transition would give businesses time to prepare fully for a post-EU trading environment.
“We have been encouraged by some recent comments made by the chancellor, Philip Hammond, but just when you think there is a plan in place, another minister comes in and contradicts it. It is simply not good enough for business needing to plan for their future and that of their employees. It has been over a year since the referendum and over four months since Article 50 was triggered.
“Our industry needs to feel confident that there is an agreed and carefully thought-through plan for trade before we leave the EU. Without it businesses are just bystanders – increasingly frustrated ones at that.”
Companies in the food and drink industry have persisted with calls to protect free-trade and free movement of labour after Brexit, which looks an increasingly unlikely prospect.
The WSTA’s calls come after its own poll shows that Brits are drinking more sparkling wine than ever, with sales in the UK growing 12% last year.
This means that sales of sparkling wine and champagne have soared by 72% since 2012 – up from 112 million bottles to around 156 million, representing an extra 44 million bottles.
Overall, the UK is the sixth largest sparkling wine market in the world, and the largest market for champagne outside France. Recent reports suggest that the UK is also the largest export market for Italian sparkling wine by both volume and growth, demonstrating British consumers’ demand for sparkling wine.
“Over two thirds of UK trade in wine is with the EU, and the question of how to keep the UK at the heart of the world wine trade post-Brexit is key if we want to see continued growth in years to come,” Beale said.
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