Photographer: Matthew Lloyd/Bloomberg
Meat Industry Faces the Chop on No-Deal BrexitBy
No-deal outcome would cause trade to collapse, group says
Industry urges long transition to allow suppliers to adjust
If the U.K. leaves the European Union without a trade deal, the impact would be catastrophic for the European meat industry, according to a new report.
A no-deal outcome would lead to “trade collapsing and market prices falling, resulting in job losses across the EU,” said the report commissioned by the European Livestock and Meat Traders Union. Meat products would face the highest tariffs of all industries, the group said.
In a so-called hard Brexit scenario, beef trade from the U.K to the EU and vice versa would fall more than 80 percent due to the costs for customs and veterinary checks and higher transport costs, the report estimated.
Less trade would lead to a surplus of EU beef and pig meat, lowering the value of European beef production by 2.4 billion euros ($2.9 billion) in the short term.
“It would be very difficult for U.K. suppliers to find alternative markets for these products domestically as the U.K. tends to export cheaper cuts,” the report said. “This will hurt British farmers and businesses, leading to job losses across the U.K.”
To minimize disruption, lawmakers should provide a long transition period to allow businesses to adjust. U.K. and EU regulators should keep working together and allow for simplified transit and invest in ports.
“By potentially cutting off one of the largest and highest value meat markets in Europe, Brexit threatens to be catastrophic for the industry across Europe and the U.K.,” said Philippe Borremans, president of European Livestock and Meat Traders Union.