Monday, January 6, 2020

German farmers want a soft trade deal

The German Farmers' Association (DBV) are pressing for a generous post Brexit trade deal for the UK: Give UK a good deal

The UK is a key customer for German agriculture, importing €4.5bn of goods a year, while sending just €1.3bn in the other direction. No other country gives Germany such a big surplus in food and drink. Of course, the EU has a trade surplus on goods with the UK, but not on services.

The DBV is concerned that if there is no agreement in place by the end of 2020, the surplus could be halved. Even if there is a mutually beneficial deal, the surplus will fall by one fifth. For analysis by the Johann Heinrich von Thunen Institute of two different scenarios, go here: Implications for the German agro-food sector

Britain imports more than a third of the food and drink it consumes from the EU, more than it buys from the rest of the world put together. Its biggest source is the Netherlands, followed by Germany, Ireland and France.

There is a debate within the Government about whether parallel trade talks should be held with the US, some arguing that this would put pressure on EU negotiators. The US is likely to want looser rules on GM crops and livestock products which could well be controversial.

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