MAIN CHALLENGES AND IMPLICATIONS


The UK’s withdrawal from the EU customs union and single market will also give rise to economic and market changes, both as a result of the redefinition of the basis for EU/UK trade relations and as a result of the UK’s pursuit of its own autonomously determined global trade policy. In the first instance, this will primarily affect the horticulture sector through the definition and entry into force of the UK’s own autonomous MFN tariff schedule. A revised version of the UK’s proposed ‘No-Deal Brexit’ MFN tariff schedule was published in October 2019, with this entering into force only when the UK is no longer part of the EU customs union (CLICK HERE for “The MFN Tariff Issue”).

For the least developed countries, the UK has agreed to roll over the EU’s existing unilateral Everything But Arms initiative as a parallel UK-only arrangement. This will perpetuate the current unilateral duty-free quota-free access basis on which horticultural exports from the least developed ACP countries to the UK market currently take place.

For horticultural exporters in ACP countries with free trade agreements in place with the EU, a variety of bilateral UK only ‘No-Deal’ Brexit trade arrangements are now in place, with these replicating existing duty-free quota-free access on either a long term or short term. Where long term arrangements are not already in place the conclusion of separate ‘UK only’ trade agreements are a matter of public policy and subject to the government to government agreements. In this context horticultural exporters in non-least developed ACP countries (Kenya, Ghana, Cote d’Ivoire and Cameroon) may need to lobby for the establishment of appropriate long-term arrangements basis (CLICK HERE for “Tariff Issues in Trade with the UK”).

However, it is horticultural exporters themselves who, to varying degrees, will need to deal with both the changes to the administrative basis for the conduct of trade, the economic and market changes arising from the redefinition of the UK’s trade relationship with the EU and the implementation of the UK’s autonomous trade policy (CLICK HERE for “Non-Tariff Issues Facing ACP Horticultural Exporters To Be Addressed Within the Brexit Process”).

However, individual ACP horticultural exporters will be impacted differently depending on:

  • the transportation routes to the UK or EU27 markets used (See section on Impacted Supply Chains)
  • the contractual arrangements they have in place for the payment of the horticultural product they deliver (CLICK HERE for “A Summary of Key Contractual Concerns”)

 

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