Tariffs impact every part of the food chain

By James Ridler contact

- Last updated on GMT

The FDF repeated calls to Government to avoid a no-deal Brexit
The FDF repeated calls to Government to avoid a no-deal Brexit
Imposing tariffs on food post-Brexit could start a chain reaction that would be felt by every member of the food and drink industry, according to the Food and Drink Federation (FDF).

Secretary of state for environment, food and rural affairs Michael Gove confirmed that the UK would impose tariffs on all food coming into the country in the event of a no-deal Brexit.

A spokesman for the FDF said: “The UK Government set out four potential options for UK tariffs in the event of a ‘no-deal’ Brexit. FDF has concerns around all the options available, with each option presenting unique benefits and risks depending on the supply chain model operated by individual businesses.

Change to the status quo

“Any change to the status quo would be felt across the food chain by farmers, manufacturers, traders and ultimately by consumers. The best outcome for our industry would be for Government to ensure there is a deal that avoids a ‘no-deal’ Brexit and delivers continued tariff-free and frictionless trade between the UK and the EU.”

The FDF’s comments were in response to a report by activist group the Consumer Choice Centre (CCC), which claimed imposing tariffs on food would send a signal to the rest of the world that post-Brexit Britain would pursue protectionism ahead of consumer interests.

Maria Chaplia, media associate at the CCC, said: “Free trade is vital for consumer choice as it allows consumers to enjoy a greater variety of products at a lower cost. Interventions in the form of tariffs, non-tariff barriers or quotas hit consumers the hardest, and, therefore, should be avoided or decreased at all costs.”

Liberalisation

Chaplia went on to suggest a system of unilateral liberalisation – reduction or elimination of government regulations or restrictions on private business and trade – could counter a 2.2% dip in GDP by 2030, should the UK leave without a deal.

“Much of the UK’s post-Brexit success will mainly depend on the UK’s ability to develop a comprehensive Free Trade Agreement with the EU, abolish import tariffs on agriculture, and build FTAs with other countries by embracing openness, deregulation and trade liberalisation and, conversely, neutralise and potentially even exceed the Brexit costs,”​ she added.

“If Brexit comes with tariffs on food, a small group of people, British farmers, will win while every British consumer will lose.”

Related topics: Business News, Supply Chain, Brexit Debate

Related news

Show more

2 comments

Tariffs

Posted by Derek Roberts,

All food from outside the EU currently pays a tariff so when we leave this will be cheaper. As we import more than we export the surplus tariff could be used to subsidise U.K. products

Report abuse

Taraffs

Posted by Bob Salmon,

If Mr Gove imposes tariffs on goods coming in to Britain, would we also impose tariffs on goods going out? that surely would be fair but benefit no one except the tax collectors

Report abuse

Post your comment

We will not publish your email address on the website

These comments have not been moderated. You are encouraged to participate with comments that are relevant to our news stories. You should not post comments that are abusive, threatening, defamatory, misleading or invasive of privacy. For the full terms and conditions for commenting see clause 7 of our Terms and Conditions ‘Participating in Online Communities’. These terms may be updated from time to time, so please read them before posting a comment. Any comment that violates these terms may be removed in its entirety as we do not edit comments. If you wish to complain about a comment please use the "REPORT ABUSE" button or contact the editors.

Follow us

Featured Events

View more

Products

View more