A "farming fund" to help the industry soften the impact of Brexit should be created by the government, according to MPs.
The Environment, Food and Rural Affairs (EFRA) Committee has concluded, among other measures, that the government should consider creating a fund to support the UK’s agricultural sector as it adapts to the post-Brexit environment.
EFRA, a cross-party group of MPs appointed to scrutinise Defra, has also called for a specific impact analysis for each agricultural sector, plans for physical and IT infrastructure to be drawn up and for new trading partnerships to be explored.
The suggestions are included in the release of its new report, Brexit: Trade in Food.
The report focuses on the impact on different agri-food sectors of the UK having to trade under World Trade Organisation (WTO) rules in the event of no deal being reached between the UK and EU.
It says this is "particularly pertinent" given the UK’s simultaneous withdrawal from the Common Agricultural Policy, the impact of which will be specifically considered by the Committee at a later date.
'Most significant partner'
The report concludes that the EU is the UK’s "most significant trading partner" and that there is no guarantee that a free trade agreement will be reached.
It suggests WTO tariffs could possibly lead to higher costs for consumers but could lead to beneficial import displacement.
When setting UK tariffs at the WTO, EFRA has urged the Government should understand that removing tariffs "could put many UK farmers out of business and render the UK dependent on imported food."
The report goes on to say that a liberalisation of barriers could possibly lead to cheaper imports, produced to lower welfare standards, and damage British producers.
It states that the agricultural industry needs clarity on the Government’s long-term vision, as reverting to WTO tariffs will have a "significant impact" on agriculture, given that tariffs are higher for agricultural products than for other goods and services.
'Safeguard'
Beside the farming fund, the Committee has recommended that the Government must set out how it will make sure that IT systems and infrastructure are in place for the import and export of agricultural produce.
The report says this is needed so that businesses can continue to trade smoothly with Europe and the rest of the world.
It has urged the government to begin developing relationships at a political level with potential new trading partners, and establish a sector-by-sector analysis of the impact of Brexit before the publication of the Agriculture Bill.
Neil Parish, Chair of EFRA, said it is "vital" that the government articulates its vision for protecting British food and farming.
“60% of the UK’s agricultural exports and 70% of its imports are from the EU. 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,” Mr Parish explained.
“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.
“We should under no circumstances compromise on our world-renowned animal welfare, environmental, and food standards. Brexit should be an opportunity to improve, not undermine, our global reputation for quality.”
