+UPDATE+
So here’s a heads up:
UK govt sitting on - yet - another report.
This time on one of UKs political sensitive fishing industry.
UK govt + DEFRA are now concerned that a “no deal” will “devastate the UK shellfish industry.
A thread.
So here’s a heads up:
UK govt sitting on - yet - another report.
This time on one of UKs political sensitive fishing industry.
UK govt + DEFRA are now concerned that a “no deal” will “devastate the UK shellfish industry.
A thread.
2/
It now seems that UK govt concerned that while EU takes a big % of UK shellfish haul - the UKs position of dominant supplier in this market will be lost in a no deal environment due to the intersection of a number of factors.
1st - tariffs & non-EU 3rd country completion...
It now seems that UK govt concerned that while EU takes a big % of UK shellfish haul - the UKs position of dominant supplier in this market will be lost in a no deal environment due to the intersection of a number of factors.
1st - tariffs & non-EU 3rd country completion...
3/
While it’s generally known UK would face tariffs of circa 9% on these shellfish - what’s less well known is some 3rd country non-EU states can sell to EU at zero tariffs.
This means that given margins the cost would either have to be absorbed by UK fishers or markets lost.
While it’s generally known UK would face tariffs of circa 9% on these shellfish - what’s less well known is some 3rd country non-EU states can sell to EU at zero tariffs.
This means that given margins the cost would either have to be absorbed by UK fishers or markets lost.
4/
This competition would also have implications on UK shellfish exports to the important S Korean market.
In other words Brexit no deal & thus EU tariffs could not only wreck the UK shellfish exports to EU but will damage UK sales to non EU countries.
This competition would also have implications on UK shellfish exports to the important S Korean market.
In other words Brexit no deal & thus EU tariffs could not only wreck the UK shellfish exports to EU but will damage UK sales to non EU countries.
5/
Given that the shellfish industry is the largest & most important UK fishing industry sector - ministers are concerned that in chasing after reestablishing “control of British fish” - the result is likely to be the destruction of the UKs most profitable seafood industry.
Given that the shellfish industry is the largest & most important UK fishing industry sector - ministers are concerned that in chasing after reestablishing “control of British fish” - the result is likely to be the destruction of the UKs most profitable seafood industry.
6/
DEFRA estimates almost 2000 UK boats (41% of all UK boats) with over 4 000 fishers (that’s over half of fisherman jobs) with over 4 000 additional shellfish industry workers in UK at severe risk.
In other words the major seafood industry risks losing UK workers in 10 months.
DEFRA estimates almost 2000 UK boats (41% of all UK boats) with over 4 000 fishers (that’s over half of fisherman jobs) with over 4 000 additional shellfish industry workers in UK at severe risk.
In other words the major seafood industry risks losing UK workers in 10 months.
7/
DEFRA has done an analysis of no deal & has estimated that UK fishing industry not in a position to absorb all the tariffs without wage reductions & “consolidation”.
What’s more the impact will be felt instantly as soon as UK shellfish exporters try to export post Jan 2021.
DEFRA has done an analysis of no deal & has estimated that UK fishing industry not in a position to absorb all the tariffs without wage reductions & “consolidation”.
What’s more the impact will be felt instantly as soon as UK shellfish exporters try to export post Jan 2021.
8/
But there’s a further catch.
The most profitable part of shellfish industry is live - not frozen - exports.
But this depends on frictionless trade as produce “extremely time sensitive”.
These factors together mean shellfish industry facing “devastation” in just months time.
But there’s a further catch.
The most profitable part of shellfish industry is live - not frozen - exports.
But this depends on frictionless trade as produce “extremely time sensitive”.
These factors together mean shellfish industry facing “devastation” in just months time.
9/
Amid mounting panic in DEFRA a series of fallback scenarios are being developed to subsidise U.K. shellfish industry post January 2021 depending on levels of deal/no deal but these have yet be finalised.
/ends
ADDENDUM - many thanks SC for this - all add info welcome.
Amid mounting panic in DEFRA a series of fallback scenarios are being developed to subsidise U.K. shellfish industry post January 2021 depending on levels of deal/no deal but these have yet be finalised.
/ends
ADDENDUM - many thanks SC for this - all add info welcome.
