Brussels, 4 December 2020
Primary Food Processors (PFP) warned that a no deal Brexit scenario would severely disrupt EU UK food supply chains and place more than €2 billion worth of annual agri food trade at risk. As negotiations approached the end of the Brexit transition period, the organisation called for an ambitious trade agreement that would preserve quota free and duty free trade between the European Union and the United Kingdom.
PFP highlighted the deep integration of food and agricultural supply chains between both markets and warned that continued uncertainty was already creating operational and commercial risks for businesses across Europe’s primary food processing industries.
The organisation noted that annual exports from the European Union to the United Kingdom exceeded three million tonnes of products worth approximately €1.7 billion, while imports from the United Kingdom exceeded one million tonnes worth approximately €637 million. Together, these trade flows represented more than €2.3 billion in annual economic activity.
PFP warned that the absence of a trade agreement could introduce tariffs, customs barriers and additional administrative burdens that would significantly affect the competitiveness of European food processing industries and their trading partners.
The association also requested a transition adjustment period of at least six months to allow businesses sufficient time to adapt to new customs procedures, regulatory requirements, rules of origin and product labelling obligations. According to PFP, a phased implementation period would help reduce disruption and preserve supply chain continuity.
The organisation highlighted a number of key risks associated with a no deal scenario, including increased import duties, supply chain disruption, reduced market access, operational uncertainty and additional economic pressure on industries already facing significant market challenges.
PFP emphasised that many sectors rely heavily on cross border trade with the United Kingdom. Examples include starch products, sugar, flour, vegetable oils, oilseed meals and cocoa products, all of which move in substantial volumes between the two markets each year.
The organisation also called for clarification regarding eligibility criteria for the Brexit Adjustment Reserve, noting that targeted support measures may be necessary for sectors disproportionately affected by changes in trading arrangements.
According to PFP, the United Kingdom represented a significant export outlet for several primary food processing sectors, accounting for up to 9% of production outlets in certain industries. Maintaining stable trading conditions therefore remained a key priority.
PFP concluded that a comprehensive trade agreement combined with an appropriate adjustment period would be the most effective way to minimise disruption, protect competitiveness and preserve the resilience of Europe’s food supply chains.
PFP members process approximately 220 million tonnes of raw materials annually and employ more than 120,000 people across the European Union.
