UK and EU trade bodies stand united as May triggers Brexit

As UK Prime Minister Theresa May triggers article 50 for the UK to leave the EU after 44 years, the industry stands with EU colleagues to maintain smooth trade.

The WSTA, which represent more than 300 UK businesses, has pledged to stand with European colleagues to maintain its free flows of trade.

Chief executive Miles Beale said today marked an historic moment for the UK, that would bring both challenges and opportunities to the wine and spirit trade.

“We stand together with our European Trade Association partners in our joint ambition to secure free trade flows. We have repeatedly said to Government since the referendum that the only way to achieve its aim for a frictionless Brexit is for the Government and industry to work in partnership,” he said.

“A phased leaving process will allow time to establish an EU free trade agreement and to put in place the necessary systems and infrastructure. Failure to do so, risks disruption to supply chains, chaos at UK ports, increases in costs for UK businesses and ultimately even higher prices for consumers.

He said the WSTA would continue to work tirelessly to achieve its key aims of continued, tariff-free movement of wines and spirits to and from the EU; new, tariff-free trade agreements with priority countries outside the EU; and equally safe passage of goods without extra checks at borders once the UK has left the Customs Union.

The Comité Européen des Entreprises Vins (CEEV), which represents wine companies, echoed the WSTA’s view, calling for “legal certainty” and the maintenance of a smooth flow of trade between the EU and the UK as the two-year negotiation process started.

“Ensuring smooth wine trade flows is important to both the EU and the UK economies” Jean Marie Barillère, President of CEEV said. “EU wines and UK consumers have had a special relation for centuries and shall continue to have it despite Brexit. With EU wines representing about 55% of UK wine imports, there is no doubt that the UK market is of utmost importance for EU wine producers, and that the British really appreciate European wines”.

Secretary General of CEEV Ignacio Sánchez Recarte reaffirmed that the overall objective of the CEEV was to ensure that there is no disruption of trade between the United-Kingdom and the 27 remaining nations.

“To allow business and administrations to adapt to the new system of trade relations, a future EU-UK Free Trade Agreement (FTA), it will be fundamental that leaders on both side of the Channel agree on a transitional period and on a FTA in a time frame that will reduce uncertainty as much as possible” he said.

Australian Vintage’s general manager UK and Europe Julian Dyer said Australian Vintage would do everything it could to ensure free trade remained for wine, goods and services and was hopeful these objective could be achieved.

“We also hope that negotiations run smoothly and proactively, and that the currency markets respond in a way which strengthens GBP sooner rather than later. That would be a great help to all businesses importing goods into the UK.”

Robin Copestick of Copestick Murray said his main concern was instability, which could hinder long-term planning particularly for strong brands such as its as ‘I heart’ – but that there was “no need to panic”.

“Whilst I was, and still am, a Remainer, I am confident that the UK will be fine in the medium and long term. History shows us to be extremely entrepreneurial and resourceful,” he said.

“However I am sure there will be some short-term pain and this is when brand owners, suppliers and our customers have to be brave and work together in an intelligent way. There is no need to panic.”

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Julie Hesketh-Laird,acting chief executive of the Scotch Whisky Association said the success of the Scotch Whisky industry should not be taken for granted during the complex Brexit negotiations. “As a major manufacturer and exporter, the continued growth of Scotch will be a litmus test of the success of the UK’s departure from the EU,” she said in a statement. 

“Some aspects of doing business won’t change for Scotch post-Brexit. Under World Trade Organisation rules, Scotch will continue to benefit from a zero tariff on exports to the EU. In many other markets Scotch will also continue to see existing zero tariffs, for example in the US, Canada, and Mexico, as these are offered to all countries already. There are, however, many areas where Brexit could have an important impact on Scotch Whisky trade and we’re working with government to address those potential challenges. 

“We want the UK Government to pursue as open a trade policy as possible; secure continued robust protection of Scotch; transpose relevant EU single market legislation into UK law; retain the preferential market access that Scotch Whisky receives under existing EU Free Trade Agreements (FTAs), such as the EU/Korea deal; find opportunities where a distinct UK approach could benefit domestic industry and ensure a domestic tax and regulatory agenda that delivers a platform for international growth.”

UKVA chairman Barry Lewis said the move marked the start of a new relationship with partners and friends across Europe, adding that the organisation had “set out its stall” with DEFRA and Ministers at the start of the year.

“The discussions and real work begins now to ensure our fast-growing industry has space to grow and prosper outside the EU, while retaining or adapting mutually useful regulations, protections and relationships within Europe. We’ll be having active dialogue with Government and mutually aligned bodies on issues that affect our industry,” he said.

“The challenges we are facing are around the availability of casual and semi-skilled labour and what the landscape will be like for subsidies and grants in post-Brexit Britain.  Other areas such as additives, planting rights, pesticides and herbicides along with geographical indication protections are also topics for the industry to focus its efforts on being heard.”

He concluded that one of the most important things for the future of the English and Welsh wine industry was membership of the OIV. “[This will] ensure we have access to information, best practice and links to global markets and ideas and so we will continue to campaign for this.”