No deal Brexit "unacceptable" according to UK's drinks trade body
No deal on Brexit is completely “unacceptable” according to the UK”s wine and spirit trade association the WSTA.
In evidence submitted to a UK Parliamentary committee inquiry on the ramifications of Brexit on the food and drink industry, the WSTA said that the “continued success” of both EU and UK wine and spirit businesses was dependent on trade between the two regions being maintained after Brexit “with minimum disturbance”.
And a no deal scenario is completely unacceptable for the sector, it said. “Not only would we lose tariff free access to wines coming from the EU, but also from 50 other countries we currently enjoy tariff free access as members of the EU,” said the WSTA’s chief executive Miles Beale of a potential no-deal outcome
Should this eventuality actually materialise and the UK leave the EU without agreeing a free trade agreement, and assuming the UK keeps its current WTO schedules, customs tariffs would be around 13.10 - 15.40 Euros depending on ABV. Currently tariff free, sparkling wine would increase to 32 Euros per 100 litres, which would add around 8.5p/10p/22p respectively per bottle of still or sparkling wine, which the WSTA claim would be “hugely damaging” to UK wine businesses, especially those working to tight margins.
World Trade Organization tariffs - the fallback option if there’s no agreement by the time the UK is set to leave the EU in 2019 - are often significantly higher than for other goods, claimed the Food and Drink Federation, which has also warned of the consequences of a 'no deal' Brexit in its written submission to the government’s Business, Energy and Industrial Strategy Committee inquiry into the impact of Brexit which is taking place this morning (Wednesday).
"Food is part of the UK’s Critical National Infrastructure and ‘just in time’ (JIT) supply chains mean empty shelves in four days or fewer if supply is delayed or interrupted," the FDF said. "Most food has a limited shelf life and some is highly perishable. Many manufacturers form part of complex European supply chains, developing local specialisations which help to boost company competitiveness. The ability to import and export goods and ingredients seamlessly across borders is critical to business models."
The British Beer & Pub Association also underlined the importance of migrant labour to the EU for bar operators as well as food and drink manufacturers, while the Association of Licenesed Multiple Retailers which represents restaurants and bars said in its evidence: “WTO tariffs could significantly increase the cost of food and drink imports. In the event of no trade deal being agreed with the EU, we would welcome a government commitment to eliminating all trade tariffs on food and drink products around the world.”