NFU Cymru Deputy President John Davies appeared before the House of Commons’ Welsh Affairs Committee on Tuesday (Dec 12) to present the Union’s key asks post-Brexit.
Mr Davies spoke of the Union’s wish for the UK to remain part of the EU’s Customs Union arrangement after we leave the European Union in March 2019, as a transitional measure, until any free-trade agreement with the EU27 takes effect.
Having given evidence to the Committee as part of their enquiry into Brexit, Agriculture, Trade and the Repatriation of Powers, Mr Davies said: “I am pleased at last week’s developments which are a positive step forward and do now appear to pave the way for the Brexit talks to move on to the crucial second phase around trade.
“Although we may well reach agreement on withdrawal and transition within the next year or so, we do not know whether a tariff free trade deal will be in sight, let alone concluded by March 2019. For that reason, as a transitional measure we need to remain part of the EU’s Customs Union arrangement after Brexit day to ensure that the goods we sell into the European Union are not subject to tariffs and non-tariff barriers.
“Over three quarters of our food and drink exports go to the EU, including over a third of our lamb crop, and it is now essential that this trade continues in a free and frictionless manner after March 2019, when we leave the European Union. Farmers, processors and everyone involved in the food industry need to be able to make business decisions with some idea of what markets will be open to them after March 2019. Production cycles in agriculture are long, and many animals currently being born on farms in Wales will not be marketed or reach their productive potential until after we have left the EU.
“The effects of tariffs on our produce would have a devastating impact on Welsh agriculture, if suddenly our lamb is 46% more expensive, our beef 65% more expensive, or our cheddar cheese 43% more expensive in the EU 27. Food is also of course a perishable product, and on top of our concerns about tariffs, we can ill-afford to see delays in our produce getting on to crucial EU markets, through border checks and processes and procedures that slow down the movement of our produce. We must maintain the free and frictionless trade between the EU and the UK.
“We need a managed the transition out of the EU, and a Customs Union will give all sides the time to negotiate the free trade agreement with the EU that we all need. There are 53,000 people employed on farms in Wales and some 223,000 working in our food and drink sector, with many of these jobs only there because of the export opportunities we currently enjoy with the EU.”
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