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Manchester Evening News
Manchester Evening News
World
Helen Carter

Food and drink supplies 'face more disruption from Brexit than Covid'

Food and drink supplies in the UK could face further disruption at the end of the Brexit transition period that are worse than during coronavirus, an industry body is warning.

The Food and Drink Federation says with not many working days to go before the transition period ends on December 31, how can traders prepare "in this environment".

Ian Wright, chief executive of the Federation, told the BBC that rules for sending goods from Welsh ports to Northern Ireland have only just been published, adding: "It's too late, baby."

Border checks and ongoing uncertainty over a deal make it difficult to guarantee movement of food items through ports without delays, he said.

He was giving evidence on Tuesday at the Commons Business Committee on Brexit preparedness.

He said there was a big concern that the problems would erode the confidence of shoppers in the supply chain. "It has done very well over Covid", he said. "And shoppers will expect the same thing over Brexit, and they may not see it."

"We can't be absolutely certain about the movement of food from the EU to the UK from 1 January for two reasons", he added.

"One is checks at the border. The other is tariffs, and the problem with tariffs, is we don't know what they will be.

"My members will not know whether they are exporting their products after 1 January, or whether they'll be able to afford to imports them and charge the price that the tariff will dictate."

While he expects Kent's Operation Brock to work reasonably well, he's less confident about Holyhead in North Wales, where goods head to Norther Ireland.

He described the Northern Ireland protocol as "a complete shambles".

Meanwhile, the Scottish Retail Consortium (SRC) said if no trade deal is in place, retailers will struggle to insulate consumers from the impact of £3 billion of new tariffs on food.

SRC director David Lonsdale said retailers want to see a lasting tariff-free and minimal-friction trade deal between the UK and the EU.

Foreign Secretary Dominic Raab has sought to reassure shoppers (PA)

The Brexit transition period expires on December 31, at which point the UK will leave the bloc’s single market and customs union.

The government must “strain every sinew” to agree a zero-tariff agreement.

Mr Lonsdale said: “Avoiding a no-deal cliff edge ensures consumers continue to have the widest possible choice on shop shelves and helps retailers keep down prices.

“Without a trade deal there is little retailers can do to insulate consumers from the impact of £3 billion of new tariffs on food in our supermarkets and grocery stores, as four-fifths of UK food imports come from the EU.

“Moreover, new checks and red tape that will apply from January 1 will create additional headaches in the supply of many goods that come from or through the EU."

Foreign Secretary Dominic Raab told the BBC that tariffs – which will be levied on imports from the EU if there is no free trade deal – play only a small part in the cost of food.

He said: “Of all the things that will be a challenge, I am not concerned about either supermarket cupboards running bare or the cost of food prices.

“Equally, there will be some bumps along the road if we don’t get a free trade deal, that’s the inevitable consequence of change.

“But we will be well braced and well prepared to deal with those, and we are going to make a success of leaving the transition period, come what may.”

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