British farmers need a Brexit fund, MPs on the Environment, Food and Rural Affairs committee say
Farmers need to be given access to a special “Brexit fund” to help the agricultural sector adapt to new trading rule after leaving the EU, MPs have warned.
Analysis of the potential impact of Britain leaving the bloc found that farmers face export tariffs if no trade deal is reached with the EU – and that could be passed on to consumers in the form of higher prices.
“60 per cent of the UK’s agricultural exports and 70 per cent of its imports are from the EU,” said Neil Parish, chair of the environment, food and rural affairs committee which produced the report.
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“In order to safeguard the livelihoods of UK farmers and guarantee domestic food security post-Brexit, it is vital that the government articulates its vision for protecting both. The first step in this process is creating an analysis of each farming sector before bringing the Agriculture Bill before Parliament.
“UK agriculture will need to adapt to the changed trading circumstances following Brexit, so the government should consider putting funding in place to enable farmers to do so.”
In a no deal scenario, trade would operate under World Trade Organisation (WTO) rules, a potential situation which is as the centre of the analysis.
The group of MPs also found that a liberalisation of barriers could lead to cheaper imports, but could reduce animal welfare standards, something they urged the government ot be cautious of.
The report was welcomed by business groups.
“It’s not just new tariffs that will put upward pressure on consumer prices,” said Helen Dickinson, head of the British Rail Consortium.
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“The government is unreserved in its intention to leave the Customs Union, so it is essential that we agree customs and border controls that allow food to continue to move uninterrupted across borders.”
She added: “Ahead of a crucial month in the Brexit negotiations, this report reiterates the urgent need for some certainty on the rules that will govern the UK’s future trading relationships. It lays bare the cost of imposing new tariff and non-tariff barriers on retailers and other businesses, with consumers ultimately set to pay the price.”