Deal

The Deal

Tariffs - coming out of Customs Union

Big sigh of relief there will not be tariffs on farm and food stuffs on either side of the Channel

That takes account of tariff - same each way - ie taxes - apart form that to T&L, These can change in future - with agreements of both sides.

There will still have to be 'tariff declarations' at Border Checks.

Seed potatoes excluded??

Level Playing field after Single Market

But 'non tariff' barriers will impose friction on trade! Many of the spokespeople are saying 'well there will be 'non-tariff' barriers, as if they did not count. But look what is happening in Kent - as business try to avoid non tariff barriers coming in Jan 1

UK can now develop its own SPS (below) framework, which includes measures intended to protect human, plant and animal health. The fundamental trade-off Britain faces between regulatory autonomy and access to the Single Market will be crucial:

The option to develop its own SPS measures following its departure from the EU offers an opportunity for Britain to move away from “non-tariff protectionism” and promote agri-food trade with countries often hindered by stringent EU standards. This could facilitate new FTAs that help reduce the UK food and agriculture sector’s dependence on the EU.

But oh non tariff barriers do cost time and there is an expected 2-8% increase in prices, but more worryingly increased delays in Just-in-time systems, crucial to supermarkets delivery.

Here are some 'non-tariff' barriers that will need to be checked at EU borders....whether in Calais - or Warrington. Checks will be not just for products, but also 'production' methods.

it will be necessary to establish SPS measures’ equivalence, accepting each other’s (different) measures as equivalent; or mutual recognition, recognising each other’s conformity assessment procedures as equivalent. This benefits both - but can only be only be preserved with 'regulatory cohesion, hence all the talk about 'EU regulations changing in future and UK have to comply'.

The Canadian deal - CETA - does establish specific rules for equivalence, streamlines approval processes, and facilitates cooperation, but lacks mechanism for mutual recognition. And we move much more food and farmstuffs in and out of EU than Canada.

Non Tarif barriers (NTBs)

Different rules and regulations are often the biggest practical barrier to trade between countries. Sanitary and phytosanitary (SPSs) and technical barriers to trade (TBTs) requirements are two main non tariff barriers, and both have increased substantially over the last ten years An increase in NTBs could reduce trade in two ways. First, outside of the customs union, British importers will be exempt from adherence to EU regulatory standards on goods imports from non-EU countries. This is what the argument about 'import food standards' was all about. This will harm the competitiveness of exporters selling EU-compliant goods to the UK market. Second, under any scenario, delays associated with increased customs handling times and documentary compliance requirements will exceed the current arrangement of frictionless trade and therefore increase costs for EU exporters to UK
House of Lords Impacts of NTBs on food 2019
Examples of non-tariff barriers include There are EU-wide agreements on product standards and rules of origin. There is likely to be a significant increase in NTBs. rules on labelling and safety standards on products. result of policies that differentiate between national and international companies and firm that give preferential treatment to companies in their country when procuring contracts.

Widespread concern remains that any divergence from high EU standards will mean lowering the UK’s SPS standards. Oft-cited examples include imports of hormone-treated beef and chlorine-washed chicken from the US; both have been banned in the EU since the 1990s on the grounds of the Community’s (contested) “precautionary principle.” and are part of 'non tariff barriers into EU.

Limits on fungicides in basmati rice, and the enforcement of food hygiene standards for milk and dairy products such as paneer - that India object to

MRLs in foods. These are maximum residue levels of pesticides in foods - that China objects to

Animal welfare - will need 500 vets to confirm to necessary standards before export to EU

Animal based sandwiches - ham and cheese in lorry cabs will have to be checked.

Fisheries.

EU will lower access to catch over next 5.5 years.

Ireland

Fears have been raised over the impact of non-tariff barriers while the IFA has warned the over the possibility of cheap food imports damaging the vital UK market for Irish food. ie cheap food from elsewhere will push out Irish food imports