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Farmers in the UK will face more competition from imports after Brexit, a former UK government trade minister has said.
“You will face more competition, lower prices and potentially less subsidy at some point in the future, but with the opportunity to export more,” Lord Mark Price said at an event at Queen’s University Belfast.
Lord Price is former managing director of British retailer Waitrose and was Minister of State for Trade and Investment in the Tory government from February 2016 to September 2017.
In my view, such a deal would be based on zero tariffs with the EU as we have now
He believes that Brexit will eventually lead to a comprehensive free trade agreement being done between the UK and EU, and that this was a more likely outcome than no trade deal being agreed at all, or the UK remaining in a customs union with the EU.
“In my view, such a deal would be based on zero tariffs with the EU as we have now, and regulatory alignment in areas which made common sense. For instance […] in food and drink, particularly given the importance of that sector to trade with Ireland and across the border.”
This type of trading relationship will allow the UK to pursue its own independent trade policy with other countries after Brexit and Lord Price predicted that this will lead to cheaper food prices for UK consumers.
What about chlorinated chicken that we hear so much talk about?
However, he pointed out that imported products will still have to comply with local standards on issues like welfare and labelling.
“What about chlorinated chicken that we hear so much talk about? It will be for DEFRA, DAERA, the Food Standards Agency etc. to regulate UK food standards, not the Department for International Trade,” he suggested.
His advice to farmers is to prepare for more competition and less government support, by becoming more cost efficient. He also urged local farmers to work together to market local products domestically and abroad.
“Your competitor is no longer the farm next door or neighbouring county. It will be Mexico, or Argentina, or New Zealand, or Australia,” Lord Price said.
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