Emmet Doyle, Bord Bia London office, UK Meat Trade Marketing Specialist
Among the highs & hysteria of England’s World Cup run, there have been a number of developments in the realm of UK politics & Brexit. Earlier in the week Brexit Secretary David Davis & Foreign Secretary Boris Johnson stepped down to be replaced by Dominic Raab & former Health Secretary Jeremy Hunt. This was following Theresa May’s Chequers agreement on Friday 6th July, which is the British governments’ collective position for the future of Brexit negotiations.
On Thursday 12th July, the UK government released their most recent white paper – ‘The future relationship between the United Kingdom and the European Union’, which is being touted as the opening move for the next phase of the Brexit negotiations. Two key proposals in the white paper affecting Irish suppliers include:
Harmonisation of Goods
The UK propose to “maintain a common rulebook for all goods including agri-food” products after Brexit, with the UK committing via treaty on continued harmonisation with EU rules.
Customs Deal
The UK recommend a facilitated customs arrangement whereby the EU & UK would avoid hard borders by being treated as a “combined customs territory”. Under this, the UK is suggesting collecting EU tariffs for products destined to EU & equivalent UK tariffs for products destined for the UK. It’s anticipated under this process, post-Brexit the UK could set trade agreements with third countries.
What Does All This Mean?
It is important to note that the white paper is only the UK’s negotiating position and not a signed & delivered trade agreement. In light of that companies need to continue the process of preparing for Brexit & market diversification. In the recent Brexit Barometer 2018 event, launched by Minister for Agriculture, Food and the Marine Michael Creed TD at Bord Bia’s Thinking House found:
- 74% of respondents believe they have made progress in preparing for Brexit outcomes
- 85% are actively seeking to expand their business into new markets
- 54% have tailored marketing strategies specifically for the UK market
Through the Brexit Barometer, a number of challenges for suppliers have been identified. Such challenges include understanding customs & tariffs; currency risks & supply chain. Bord Bia have a number of resources to help client companies including some upcoming workshops in September. Please find the relevant background to the workshops & resources below:
