Warning of rising food bills after Brexit

Image caption The UK imports roughly fifty percent its food – nearly another of which originates from the EU

Foods bills could rise sharply when there is no free trade deal with europe after Brexit, peers have cautioned.

The Lords EUROPEAN UNION Environment Committee said it was “inconceivable” there would be no impact on EU create, which makes up 30% of the Britian’s food imports.

While better-off customers could pay for to buy more expensive home-grown goods, this said, those on lower earnings could be left with lower-quality imports.

Officials said the particular UK’s aim was to ensure the “smooth flow” of goods.

Brexit-supporting MPs say leaving the EUROPEAN could reduce food prices simply by removing unnecessary regulation on UNITED KINGDOM farmers and cutting tariffs upon imports from the rest of the world.

But the cross-party committee mentioned it was unclear whether the government’s main goal after Brexit was decreasing food prices, or maintaining higher animal welfare and food basic safety standards.

In the event of the UK leaving the EUROPEAN UNION in March 2019 without any offer, it said, the UK could encounter an average 22% tariff on foods imports from the Continent.

“While this would not equal a 22% increase in food costs for consumers, there can be no doubt that will prices paid at the checkout might rise, ” it said.

“To counteract this particular, the government could cut tariffs upon all food imports, EU plus non-EU, but this would pose a critical risk of undermining UK foods producers who could not compete upon price. ”

The particular cabinet’s Brexit sub-committee is anticipated to discuss issues relating to agriculture plus food production on Thursday. Fifty percent the UK’s food is imported, along with 30% from the EU, 11% through countries with EU trade offers and the rest from other countries.

Customs delays

The committee said there was the “striking” contrast between the government’s obvious confidence over the risk of interruption to food supplies and the “vocal” concerns of industry and customer bodies.

The UK reports it wants a comprehensive trade cope with the EU and a customs set up that continues to ensure “frictionless” industry.

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Image caption Few freight companies are aware of what is going to happen after Brexit, the industry indicates

However the government has not yet said exactly what post-Brexit customs arrangement it desires with the EU, with divisions within the cabinet over whether to seek a detailed “customs partnership” that would not need brand new border checks or a looser design that would lead to some new inspections.

The committee cautioned the UK’s ports would be blocked up if EU goods had been subject to the same border checks because other imported produce.

Yet, it said, enabling produce through with few bank checks would raise safety concerns.

Lord Teverson, the Lib Dem peer who chairs the particular committee, said food producers plus customs officials must be given time for you to prepare for any changes and customers reassured that supplies would keep on as normal.

Right after Brexit, British farmers will carry on and receive the same level of subsidies these people currently get through the EU’s Typical Agricultural Policy. This will continue till 2022.

But the panel said it would not be possible to improve food production in time to meet any kind of shortfall caused by Brexit.

‘Paralysis’

This said any reductions in EUROPEAN UNION workers could lead to an increase in recruitment or higher wages for domestic employees but the costs may have to be given to to customers or some businesses “may cease to be viable”.

The Freight Transport Association stated the “paralysis” at Dover and the surrounding road network caused by french ferry workers’ strike in 2015 could be repeated if no traditions solutions were found.

“The government understands this particular… so it must be why they are acquiring so long to make up their thoughts, ” said Pauline Bastidon, the particular organisation’s head of European Plan.

Most companies had no clue what the impact of Brexit will be on their business, she said.

“It’s surprising to find out how little advanced companies are when it comes to mapping their flows and taking a look at what their exposure is, inch said Ms Bastidon.

“Only a few are starting to fully appreciate the impact that Brexit may have on their business. ”

A government spokeswoman said the expense of food depended on range of aspects, including commodity prices, exchange prices and oil prices, and this might still apply after Brexit.

She added: “But we also want to ensure customers have access to a wide range of food, which is why we have been considering how we best manage boundary checks and controls when we depart the EU without impacting the particular smooth flow of trade. inch

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