The United Kingdom is already preparing for an uphill battle. Stricter border regulations are on the horizon, which would severely inflate the expense of importing produce from outside the EU. This move comes amid difficult negotiations and recalibrations in the wake of Brexit. British importers have suddenly been landed with inflation and the threat of delays or disruption at which import their goods.
Compared to last year, border red tape is about to swell by an order of magnitude. This means that the inspection rate for citrus fruits arriving into the UK could increase from less than 5% up to 100%. Consequently, importers will inevitably have to pass on these increased expenses. Then, they will turn around and pass those costs on to consumers. The UK would be further challenged as it sources nearly half of its oranges from South Africa and Egypt. Moreover, about one-fourth of its tomatoes are sourced from Morocco.
Nigel Jenney, chief exec of the Fresh Produce Consortium, has described what’s happening on the produce front as “frightening.” He explained that in addressing gaps in EU border rules, the pressure has just moved onto non-EU goods.
“Whilst we have resolved the EU border position, we have moved the problem and the cost to non-EU goods. What we have saved on one hand, we have lost on the other.” – Nigel Jenney
With proper support, European farmers could increase production and help fulfill the burgeoning demand from consumers in the UK. At the moment, they are unable to fully supplant those imports at the scale required. Production costs across a wide variety of food products are anticipated to rise, at least in the near term.
UK government ministers have welcomed the new deal, which they said would make trading easier. This deal allows EU and UK counterparts to skip inspections for some plant and animal products. This agreement will support greater price reductions for those particular food items, while giving consumers more options. Yet despite these positive steps, the net effect of the trade adjustments still edges towards higher costs for all non-EU imports.
Jenney further elaborated on the situation, stating, “A lot of that cost or a lot of that burden now appears to have been applied- subject to dynamic alignment- to goods being sourced from the rest of the world.”
The UK faces its own post-Brexit environmental crosscurrents. Consumers and importers alike need to get ready for major changes that may significantly transform the domestic fruits and vegetable market in the months ahead.
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