No Deal: Agriculture Tariffs

Debate between Tim Farron and Jonathan Edwards

Tuesday 16th July 2019 Westminster Hall

[Jonathan Edwards]

I welcome my right hon. Friend’s intervention, because it takes me to my next point. If we are locked out of European markets, there is no way in which domestic consumption could pick up the slack. Additionally, the final quarter of the year sees the sale of light lambs from Wales, which are traditionally destined for export. There is no way in which they could be redirected into domestic consumption. Economists previously assumed that the loss of the EU market would depress UK farm-gate prices by 30%.

[Tim Farron (Westmorland and Lonsdale) (LD)]

I am grateful to the hon. Gentleman for being so generous. The added threat of tariffs, as he suggests, is that British supermarkets will think they have farmers over a barrel because of the loss, in effect, of our export markets. Does he agree that Ministers ought to take action now and increase the powers of the Groceries Code Adjudicator to ensure that supermarkets cannot exploit the situation?

[Jonathan Edwards]

I am grateful for that valid intervention. Those are the remedial measures that the British Government should be looking at urgently to protect our domestic farm producers. We are all aware of the imbalance there has been in the supply chain over many years, with, as he said, producers under the barrel of the supermarkets. The situation may well be exacerbated by what comes in the following months.

To return to my point, economists believe that farm-gate prices will fall by 30%. With an additional 800,000 lambs on the domestic market at the end of October, farm-gate prices will come under additional pressure. I therefore call on the British Government to commit, on top of the measure mentioned by the hon. Member for Westmorland and Lonsdale (Tim Farron), to additional funds for Wales to be able to implement contingency plans should the worst happen and we find there is unsellable surplus on the domestic market. There would be a disproportionate impact on Welsh agriculture.

In other sectors, the British Government have elected partially or completely to dismantle tariff walls on most products. Tariff rates of 45% for beef, 0% for eggs and 22% for poultry meat will apply for imports into the UK from the EU and the rest of the world, while our exports of those products to the EU will face tariffs of 84%, 19%, and 48% respectively. In the dairy sector, only certain products—such as cheddar with a 7% tariff and butter with a 15% tariff—will be afforded some degree of protection, with the EU applying tariffs of 57% and 48% respectively on those products.