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The Independent UK
The Independent UK
Business
Ben Chapman

Business news - live: UK 'must accept chlorinated chicken' after Brexit US says, as British farmers warn of no-deal 'decimation'

Britain must accept US food standards such as allowing chlorinated chicken and genetically modified crops as part of any post-Brexit trade deal, the head of America’s powerful farming lobby has said.

The comments from Zippy Duval, presiddent of the American Farm Bureau, to the BBC came as British farmers demanded a referendum on any Brexit deal, warning they face “decimation” if the UK crashes out of the EU without an agreement.

Please allow a moment for the live blog below to load

Asda chief executive and president Roger Burnley is really not happy about Brexit.

He says: "If ever a case study on the impact the mood of the nation has on UK spending habits were needed, this quarter has provided it.

"Consumer confidence levels are at an almost six-year low - due in no small part to the ongoing uncertainty around Brexit and amplified by the impact of weather and tracking against national sporting events in the same period last year.

"As a result our non-food business has been challenged during the period, however we're satisfied that our food business has continued to perform well and our online growth continues to outpace the market."

Despite all this, Asda's total sales were up 1.3 per cent In the three months to 30 June.

Good morning and welcome to The Independent's coverage of today's business and economic events.
 

More than half of farms will go bust if Boris Johnson forces through a no-deal Brexitfarmers are warning, as some join the campaign for a fresh referendum.

A deadly cocktail of immediate tariffs, border checks, increased red tape and cheaper food imports from outside the EU will result in the “decimation of UK farming”, a detailed study finds.

Read the full story here from our deputy political editor Rob Merrick:

Brexit: Farmers call for fresh referendum as they warn half of farms will go bust after no-deal exit
 

The UK has been told by the American farming lobby that it must accept US standards such as allowing chlorinated chicken and the sale of genetically modified crops as part of a post-Brexit trade deal.
 
Zippy Duval, head of the American Farm Bureau, told the BBC that fears about US practices were not "science-based".
 
He said: "You know, here in America we treat our water with chlorine," Mr Duvall told the BBC's Today programme.

"So there is no scientific basis that says that washing poultry with a chlorine wash just to be safe of whatever pathogens might be on that chicken as it was prepared for the market, should be taken away.

"If there was something wrong with it our federal inspection systems would not be allowing us to use that," he added.
The infamous chlorinated chicken has become symbolic of the wider debate around potential lowering of UK food standards after Brexit.
 
What exactly is it and how much should we care?
 
Here's a rundown of the science behind treating chicken meat with chlorine wash, which is allowed in America but banned in the EU:

Is chlorinated chicken bad for our health and the environment?

The US has already laid out what it is looking for from a trade deal with the UK:
 
 
It specifically does not like EU measures it deems to be not "science-based".
 
In trade speak:
 
"Obtain commitment that the UK will not foreclose export opportunities to the United States with respect to third-country export markets, including by requiring third countries to align with non-science based restrictions and requirements or to adopt SPS measures that are not based on ascertainable risk."
 
"SPS measures" = food hygiene standards
 
Worth noting that while US farmers may not believe a ban on chlorinated chicken is science-based, there are far more cases of salmonella per person in the US than in the UK.
 
No-deal Brexit could force more than half of British farms out of business, farmers are warning.
 
Why?
 

* The EU, plus third countries with which it has trade agreements, would immediately slap tariffs on food exports from the UK.

Tariff-free imports of many agricultural products would have to be offered to non-EU countries as well, including the USA, Brazil and Australia – undermining domestic farming

* It would also be hit by new non-tariff barriers, including administrative costs and border checks to ensure compliance with EU food safety and animal health regulations.

* It would face an effective trade embargo on exports of animal-based products, while the UK and the EU negotiated an agreement.

* The removal of support payments – with only a proportion likely to be covered by Whitehall – and an adverse trading environment will “render the majority of farm businesses unviable”.
 
Meanwhile, the competition watchdog has called for the break-up of two recently-merged medical technology firms after finding the deal could lead to the NHS and charities paying higher prices.

Sweden-based Tobii bought UK rival Smartbox for £11m last year, but the Competition and Markets Authority (CMA) has now ordered Tobii to sell off the business.

The announcement comes after an investigation by independent CMA panel members concluded that the tie-up could result in a reduction in "quality, less new product development, and higher prices".
 
Press Association
In the markets, the FTSE 100 has opened up 0.5 per cent down at 7,115.53.
 
Tobacco companies are the biggest climbers, RBS and B&Q owner Kingfisher are the worst performers.
 
European stocks are stabilising after fears of a recession sparked a sell-off yesterday.
UK retail sales grew in July, lifted by a surge in online sales, according to official data.
 
The quantity bought last month rose 0.2 per cent compared with June, defying economists’ forecasts for a 0.2 per cent drop. Non-store retailing, which covers mostly online sales, jumped 6.9 per cent.
  
Compared with July 2018, overall sales grew 3.3 per cent, again boosted by online shopping. This was a smaller rise than in June but above economists’ expectations.  
 
However, on the three-month measure, which strips out some of the volatility in the figures, sales ticked up only by 0.5 per cent from the February-April period. This was the slowest pace of growth since the end of last year.
 
Duncan Brewer, retail and consumer partner at Oliver Wyman, says there were two main drivers behind July’s retail sales: a record-breaking heatwave that kept shoppers away from bricks-and-mortar shops and heavy discounting online.
 
He says:
 
“Our research shows that 75 per cent of purchases during heavy discounting periods cannibalise full-price sales, as UK shoppers look to buy planned purchases rather than new, spontaneous products.”
 
“Looking ahead, Brexit will be a major factor in consumer spending behaviour regardless of discounting. Shoppers will likely buy their Christmas shopping ahead of the 31 October deadline to avoid higher prices due to increased tariffs in the case of a no-deal Brexit.”
Unlike farmers, British consumers seem to have been able to shrug off Brexit uncertainty, so far at least.
 
Ranko Berich, Head of Market Analysis at Monex Europe, on today's UK retail sales data:
 
"It would seem UK consumers still don’t give a fig about Brexit, and remain more than willing to spend their real wage increases.
 
"The report bodes well for a likely growth bump in Q3, as there are few signs that consumers are growing anywhere near as wary of no-deal as businesses."
One argument for chlorinated poultry is that it is cheaper.
 
Zippy Duvall of the American Farm Bureau told the BBC that the UK public should have the right to buy cheaper US produce if they wanted to.
 
He said:
 
"A lot of our farmers don't understand why other countries implement tariffs on our products but then they don't want us to implement any tariffs on our end, so we need to level that playing field, tear down all those barriers and let our people be able to make the choice of what food they want to eat and where it's grown at."
Is US chicken really cheaper?
 
Using US government data from 2015, a report from free-market think tank, The Adam Smith Institute, calculated that US consumers pay 21 per cent less for a kilogram of chicken than their counterparts in the UK.

The think tank has therefore advocated negotiating a trade deal that would allow for imports of chlorine-treated meat. The ASI report does not provide evidence demonstrating a causal link between chlorine washing and cheaper poultry prices in supermarkets. Other factors could also be at play.
 
Who funds the Adam Smith Institute? No one knows because they won't tell anyone.
One bright spot on a rather gloomy economic vista:
 
 
But how long can it last given that UK workers are beocming less productive and business investment is falling?
There's been a lot of talk about the "inverted yield curve" and how it might signal a recession is on the way. (Confused? Here's an explainer
 
"Not so fast", says UBS.
 
According to Mark Haefele, the wealth manager's chief investment officer: "The length of time the yield curve is inverted, and how much is inverted, matter."

"If Fed rate cuts successfully steepen the curve comfortably into positive territory, this brief curve inversion may be a premature recession signal.
 
"Neither does a yield curve inversion indicate it is time to sell equities. Since 1975, after an inversion in the 2-year/10-year yield curve, the S&P 500 has continued to rally for nearly two years, and has risen by 40% on average until hitting a bull market peak."
TSB has apologised yet again after more problems with its online banking and mobile app.
 
Customers would not get into their accounts between 4am and 7am on Thursday morning after problems with routine maintenance.
 
TSB's suffered a disastrous IT meldown last year which caused many people to lose access to online banking services.

 
Metro Bank is the best bank in the UK for customer service while RBS is the worst, according to a survey by Ipsos Mori.
 
Just 46 per cent of RBS customers said they would recommend the bank to friends and family compared to 82 per cent of Metro Bank customers.
 
 
 
 
 
Jeremy Corbyn's plan to bring down Boris Johnson with a no-confidence vote is boosting the pound.
 
Sterling is up 0.64 per cent against the dollar to $1.2136  and 0.5 per cent against the euro to €1.088 so far.
 
Labour says it will attempt to bring down Boris Johnson's government within days of MPs returning to parliament after the summer recess, in an effort to stop a no-deal Brexit.

Senior frontbencher Rebecca Long-Bailey made the remarks as Jeremy Corbyn delivered a dramatic offer to be caretaker prime minister and secure a Brexit extension if he is successful in toppling Mr Johnson.

More from Ashley Cowburn:

Labour to attempt to bring down Boris Johnson's government within 'days' of parliament resuming

 
 
If Britain wants a trade deal with the US, it must accept American food standards, including those allowing genetic modification and chicken to be washed in chlorine, the head of America’s farming lobby has said.

Both of those practices are controversial in the UK. Washing chicken carcasses in chlorinated water to kill off harmful bacteria is banned in the EU.
 
Full story here, from Olesya Dmitracova:
 
China has threatened retaliation if Washington steps up its war over trade and technology by going ahead with planned 1 September tariff hikes on additional Chinese imports. 

Beijing will take unspecified "necessary countermeasures," the Cabinet said in a one-sentence statement. It gave no details or any indication plans for trade talks in Washington in September might be affected. 
 
The mounting tension has unnerved financial markets that worry the global economy will tip into recession. 
 
President Donald Trump says he plans to impose 10 per cent duties on an additional $300bn of Chinese imports, extending penalties to almost everything the United States buys from China. 
 
AP
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