If the European Union (EU) and the United Kingdom (UK) do not conclude a trade agreement, the meat sector will be hit hard. This is apparent from a study by the UECBV (the European trade association for meat and livestock).
In the absence of a trade agreement between the UK and the EU, we speak of a hard Brexit. This will lead to a drastic reduction in meat exports to the UK, according to the study.
Substantial decline in exports
Brexit will significantly reduce exports to the UK. According to the report, there are 84% decreases for beef, 76% for lamb and 48% for pork. This reduction is caused by extra export costs, which are caused, for example, by customs costs, import tariffs and veterinary checks.
The reduction will create a surplus of beef and pork in the EU. This ensures that beef production will fall in value by €2,4 billion. For pork products, a decrease of €2,3 billion follows. In addition, as many as 32.000 jobs will be lost.
Set transition period
The trade association says in the report that a long transition period is better for both countries. As a result, the countries are better able to adapt to the new regulations. In addition, efforts should be made to achieve equivalent rules in the EU and the UK (post-Brexit).
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.
