Shropshire Star

Major threat to rural economy from a no-deal Brexit

So the starting gun has now been fired at the start of a two-year race towards Brexit.

Published
Caroline Bedell is Regional Director CLA Midlands

Predictions that it will start at marathon pace, but end in a sprint are probably an indication of a shortage of metaphors rather than a true reading of the situation.

But let’s be clear, two years is not a long time in intricate negotiations, so we must have some immediate priorities for food and farming, a sector that is worth over £100 billion to the UK economy and employs 3.8 million people. It’s also a sector in which Shropshire punches well above its weight.

We must also remember that for decades our agriculture and food sector has operated behind high tariff walls within the EU, one of the world’s major food trading blocs. So it is vital that Government must not be distracted from completing a UK/EU free trade agreement by discussions with other nations on future trading arrangements. We cannot risk what we have by chasing something we’d like.

A carefully considered and staggered approach must be taken to allow businesses the time to adapt. If a permanent deal that takes effect within the next two years cannot be achieved, both sides must ensure transitional arrangements are put in place well in advance of Brexit.

The major threat to our rural economy would be a situation where the UK removes itself from the EU without a preferential trade deal, while removing tariff barriers for the rest of the world to sell their goods into the UK market.

This approach would be catastrophic for the rural economy and have dramatic and immediate consequences for the countryside with many farmers unable to compete.

A trade agreement with the EU that secures tariff-free and non-tariff barrier-free access is more important and should be more straightforward than any other trade deals for food and farming. So, if trade negotiations are still ongoing at the point of Brexit, transitional arrangements should be used to avoid having to operate on World Trade Organisation terms.

There must be some flexibility. Some farmers will choose to continue to follow EU rules and regulations post-Brexit to allow them to continue to trade with the EU. These farmers must not be penalised as a result of others being free to choose to take a different approach.

These are not just my own thoughts; they are based on listening to the concerns of our industry over many years. And it is up us to make sure our politicians know exactly what we need from them as they negotiate our exit from the EU.

Caroline Bedell is Regional Director CLA Midlands