Brexit

What next in tackling EU trade problems?

The huge challenges our exporters have faced since 1 January have eased in some areas but have not in many others. The unreliable nature of the export system, with loads susceptible to significant delays at multiple different points for multiple different reasons, is enormously problematic. Even if a load does successfully reach its destination in the EU, we are left with a system that is more costly, complex and significantly slower. For some businesses (e.g. craft drinks suppliers), the lack of any access to groupage just now means the door to the EU is effectively closed. We have had meetings this week with our industry partners in Scotland and counterparts across the UK. There is some momentum now building to explore a veterinary or SPS (sanitary and phytosanitary) deal with the EU, under the umbrella of the overall Brexit deal. The only real mechanism to reduce the cost and complexity of new trade rules is to explore either alignment or equivalence with EU standards – which would simply reflect the reality of the position businesses are in. This will be a top priority for our Brexit work over the coming weeks and we will keep you updated.

Brexit webinars on new import controls

The pain being felt by exporters has been lesser for those importing products from the EU due to the delayed start of import checks. Whilst there is increasing chatter about UK delaying the start of full checks on food imports from the EU into GB even longer, the next major changes are still scheduled to start on 1 April. Defra is running a series of webinars over the coming weeks that would be worth joining if you import products from the EU. The details are as follows with links to register:

25 February: Meat imports from the EU

4 March: Fish and Fishery Product imports from the EU

11 March: Composite Product imports from the EU

All the best
James Withers

General situation

It has been another week of mixed developments. We have continued to see some improvements, with some groupage managing day 1 for day 2 delivery and other single product loads are managing the same. But, the general picture continues to be problematic and trading with the EU currently feels like a high risk gamble in terms of processes working as they should and deliveries getting to market on time. The list of specific issues – from IT systems to different interpretations of the rules on either side of the Border – feels like it’s growing rather than reducing. Officials at Scottish and UK Government level continue to work extremely hard in trying to address issues and the industry organisations like ourselves and our partners, particularly in the seafood sector, are working with each other daily to try and ease the situation.  

There is still significant Parliamentary interest in the ongoing problems and this week I joined other industry bodies to give evidence on this to the Scottish Parliament’s Europe Committee and the Scottish Affairs Committee at Westminster – you can watch the session from the Scottish Parliament here and from the Scottish Affairs Committee here – we hope that our evidence will help resolutions to be found.    

Taskforce to explore red tape simplification - progress

There has continued to be significant engagement with Ministers from the Scottish and UK Governments this week on finding resolutions to the ongoing problems and simplify the current bureaucratic requirements. We were promised last week the creation of a Taskforce to give focus to these issues and we awaited details of the remit and membership. Yesterday, it was confirmed by the UK Government that this would be a specific Scottish Taskforce in light on the scale and nature of the issues faced by our industry. Whilst this is helpful we have reiterated in the strongest terms the need to now move quickly, identify the actions that can be taken, and pursue these at pace. One very helpful related development however was the recognition by UK Ministers that dialogue with the EU was indeed needed to find solutions to the ongoing issues. This was in response to our ongoing plea for this to happen, so this is a small but important development. We will now work through the Taskforce to accelerate this.   

Seafood Scotland adding to export support team

Last week we explained that the Scotland Food & Drink Partnership’s recovery plan, underpinned by Scottish Government funding, is funding new posts in Seafood Scotland to support companies with the new bureaucratic requirements. Two new staff started last week in Scotland to support businesses here, and we are delighted to report that additional support has now been recruited to provide support and expertise in Boulogne Sur Mer to assist on the French side of the channel. These staff will be on hand 6 days a week to support businesses who encounter problems at the Port and Border Inspection Post. Anyone looking to get in touch with the new staff for support should email enquiries@seafoodscotland.org

Seafood support schemes

Over 15 days on from the announcement by Defra and Treasury of a £23 million compensation scheme for fishing and seafood businesses hit by lost export sales, there is still no detail. We have no information on who exactly will be eligible, when the scheme will open, how it will be administered and when funds expect to be delivered to business. We understand more details may emerge next week but we await more information. 

Earlier this week additional support was announced by the Scottish Government for the seafood sector. £7.75 million is being made available in total to support the industry, with the majority to support the shellfish industry and trout framers affected by the loss of EU and domestic markets. We understand the scheme, which is very welcome, is likely to open next week for applications and more details will be published on the Marine Scotland website.

Defra export resources

A reminder that you can find access to Defra resources on EU exporting here.

Have a good weekend when it starts and please keep sharing your feedback on current issues.

All the best
James Withers

Friday 29th January
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Friday 18th December
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Friday 27th November
Friday 20th November