Asymmetric trade, labour, Northern Ireland protocol and seed potatoes still to be resolved

One year on from the UK’s departure from Europe, and NFU Scotland is calling on the UK Government to address the significant issues still affecting Scottish farming, food and drink.

The Trade and Cooperation Agreement (TCA), signed on 30 December 2020, brought a new era of tariff-free and quota-free trade between the UK and the EU, but it has proven to be far from friction-free.  

The Union will continue to press the UK Government to introduce proper border control inspections on produce entering the UK from the EU that are in line with the requirements that UK exporters have to meet.  The Northern Ireland Protocol is also damaging trade between Scotland and Northern Ireland.

The need to address the costly impact of permanent and seasonal labour shortages across the whole food and drink chain, exacerbated by Brexit, remains a priority for Scotland.  Likewise, after a year, Scotland’s high value, high health seed potatoes remain locked out of valuable European markets.

NFU Scotland’s Director of Policy Jonnie Hall said: “Trade with the EU in the first 12 months of Brexit has been far from smooth.  The friction at border controls for Scottish producers exporting to the EU, however, has been compounded by the UK Government continuing to grant ‘grace periods’ to imports from the EU from similar controls.  That asymmetric trade remains ongoing and is a damaging consequence of the UK’s lack of practical preparation for Brexit.

“Add in issues around specific products, such as seed potatoes, and specific issues, such as the Northern Ireland Protocol, and it’s clear that post-Brexit trade with the EU remains challenging at best and potentially damaging for some.

“Leaving the EU and the Single Market created other production, harvesting and supply chain issues across many sectors because of permanent and seasonal labour constraints.  Meat sector processing challenges around staffing levels, felt most acutely by those in the pork industry, remain very fragile.  And for the dairy, pig and poultry sectors, finding permanent staff has become increasingly difficult following our departure from Europe.

“However, the late and inadequate Seasonal Workers Pilot introduced by the UK Government has left many growers in Scotland re-thinking the risks around investing in high-value fruit and veg plants.  Our horticultural sector punches way above its weight in Scottish agriculture, accounting for only one percent of our land area but 16 percent of our agricultural output.  Access to seasonal labour in the field and in processing is key and we will be looking for a Seasonal Worker Scheme in 2022 that starts on time and goes beyond the 30,000 visas offered in this year’s pilot.

“Closer to home, the full implications of the UK Internal Market Act and the UK Subsidy Control Bill are yet to be realised in terms of just how level the UK’s single market will be.  Trade with other parts of the UK remains the most important outlet for Scottish produce by far.

“Beyond the EU, the agreement in principle of Free Trade Agreements with Australia and New Zealand have also cast a very dark shadow over UK and Scottish agriculture.  While the full implications maybe a few years off, the so-called ‘safeguards’ for domestic producers will provide little or no protection.

“It remains disappointing that, as we go into 2022, there remains so many Brexit unknowns. As things stand, the potential threats to Scottish agriculture continue to vastly outweigh the potential opportunities.

“Much work and greater commitment are needed from the UK Government and NFU Scotland will continue its significant lobbying at Westminster in the interests of Scottish agriculture.”  

Ends

Contact Bob Carruth on 07788 927675