“The UK's unlawful withdrawal from the EU would have serious consequences for the agri-food sector. We risk a sharp slowdown in sales of Made in Italy products on the British market”. That's what the says president of Confagricoltura, Massimiliano Giansanti, before decisive vote of the Parliament of the United Kingdom, scheduled for Tuesday evening, on the withdrawal agreement agreed with the Union and already approved, in December, by the heads of state and government of the EU.
In recent weeks, recalls Confagricoltura, the European Commission has launched a contingency plan to deal with the eventuality of a "hard Brexit", with a series of measures concerning, among other things, customs and phytosanitary controls.
“The Commission – adds Giansanti – has invited the Member States to prepare themselves to manage a situation of 'great upheaval', according to the definition used by the Brussels Executive. It is necessary to foresee the mobilization of extraordinary support to the agricultural sector, as well as arranged on the occasion of the blockade of exports to the Russian Federation".
Confagricoltura points out that the United Kingdom is the fourth largest outlet market for Italian agri-food. Interests of absolute importance are at stake in terms of turnover and jobs. In the event of a “hard Brexit, from 30 March next, the United Kingdom would legally be a third country and the EU customs code would apply to trade. In principle, our exports of agri-food products would be subject to the customs tariffs established by the World Trade Organisation.
“Furthermore – underlines President Giansanti – the geographical and quality indications of the EU would no longer be recognized and protected”.
Sales of Made in Italy food products on the UK market almost 3,5 billion euros a year. And products with designation of origin and quality account for 30 percent of the total value. For some products, in particular, from Prosecco to Parmigiano Reggiano and Grana Padano, purchases by British consumers fluctuate between 10 and 40 percent of the total turnover of sales abroad.
In addition to the commercial aspects, Confagricoltura points out, in the event of a withdrawal without an agreement, the United Kingdom would suspend its financial contribution to the Union budget. Net of the simultaneous interruption of European disbursements to the United Kingdom, a difficult financial situation could already arise this year and in 2020, which could require extraordinary decisions by the Council of the Union.
"Let's say right now that the financial resources for the CAP must be absolutely guaranteed", Giansanti remarks. According to figures provided by the European Commission, the British withdrawal will cause a "gap" in the EU budget of about 12 billion euros a year. “Every effort must be made to the last to prevent the United Kingdom from leaving without rules – says the president of Confagricoltura -. However, we must prepare ourselves for all possible outcomes”.
For this reason, Confagricoltura has already initiated a series of contacts with the ministries most directly involved. And he proposed to the Ministers of Foreign Affairs and Agricultural Policies the establishment of a "task force" to support companies in an adaptation phase that could be particularly difficult.
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