Brexit the Scottish way
In an unusual move the association of Scottish food and drink exporters has written directly to Boris Johnson – without mincing its words. Besides criticising the lack of preparation for Brexit it has also called for a six-month grace period and compensation.
The trade association ‘Food and Drink Federation (FDF) Scotland’ has written to Boris Johnson, the prime minister of the UK, addressing what it has called “the peri- lous situation facing the sector.” The federation wants clear new trading regulations in place before the UK leaves the EU on 1 January 2021.
Food and drink are major exports for Scotland that have already been very hard-hit by measures to
combat Covid-19.
A new deal; compensation
“The end of the transition period and ever-increasing uncertainty concerning the terms of our new trading arrangement with the EU compound our concerns,” the federation said in a letter sent directly to prime minister Johnson – an unusual move in itself.
70% of all of Scotland’s food exports are destined for the EU, which is also the largest market for Scotch whisky. This state of affairs makes tariffs, any disruption at the border for high-value perishable goods, and certification costs all vital issues for the federation.
A so-called no-deal departure from the EU would thus be “catastrophic” for its members, the FDF said, and emphatically urged the government to avoid this. It wants the government to negotiate a six-month grace period to allow businesses to adjust to new rules, including the requirement to produce export health certificates and other export certification papers, including haulage permits.
The FDF has also asked the government to commit to financial compensation for producers, and to finalise operational arrangements to allow the smooth movement of seafoods across the Channel, including giving seafood space on government-run ferries, if required. These latest FDF Scotland moves came as its sister organisation in England reported on a survey that found that large sectors of the food industry are underprepared for Brexit.
Dominic Goudie, the federation’s head of international trade, told the ITJ that “large gaps remain in the information that has been provided by the government, not least on product labelling and border processes facing food and drink exports.”
FDF’s latest business readiness survey has shown that around 50% of enterprises don’t expect to be fully prepared before the end of the transition period. Goudie is particularly worried by the fact that only 3.7% of the firms surveyed described themselves as being “fully prepared.”
The industry, the federation as well as a great many logistics firms are concerned that a ‘hard’ Brexit will result in extremely tight deadlines. The federation has already made it abundantly clear to all concerned that there will certainly be a great deal of disruption around Brexit in any case.