Price hikes or bust farmers? Another miserable Brexit choiceby Nick Kent | 19.02.2019
Tomorrow a cabinet committee will tackle an especially thorny Brexit problem: deciding the duties to be levied on imports if we crash out of the EU without a deal.
Two pro-Brexit ministers are at loggerheads on how to proceed. Liam Fox, our not very successful trade secretary, apparently wants zero tariffs on as many imported goods as possible. But Michael Gove has promised farmers “specific and robust protections for farming” when the tariffs are announced.
Neither option is good. If we slash import duties farmers will go bust, but if we keep them at current rates food prices could rocket. It’s another miserable decision forced on us by Brexit.
If we crash out without a deal on March 29, the UK will have to trade with the EU on World Trade Organisation (WTO) terms. The UK will have to charge the same level of duty on imports from the EU as we charge those from other WTO countries. This “most favoured nation” rule also requires the UK to set and publish its list of duties (the tariff), which is what ministers plan to agree it at a meeting tomorrow.
It all sounds very technical, like so much to do with Brexit. But buried within the mysteries of trade lie some painful truths. Average EU tariffs on food are high: 40% on meat and dairy, 30% on chocolate and 11% on fish. Roughly 70% of the UK’s food and drink imports come from the EU. Adding tariffs at current rates to those imports could increase their collective cost by £6 billion.
The solution seems obvious – cut the import tariffs on food and drink to keep prices down in the UK. But that would encourage producers all over the world to flood the UK market with cheap food – at prices our farmers couldn’t match. Those imports might be cheap but they wouldn’t have been produced to equivalent standards, whether in terms of food safety or animal welfare.
It gets worse for farmers who export pr>>>>>>>>>>>
https://infacts.org/price-hikes-or-bust ... gjN4S5S8Os