Trade Deal Concerns Arise for UK Farmers and Cheesemakers

Trade Deal Concerns Arise for UK Farmers and Cheesemakers

British farmers and cheese makers are extremely worried about the damaging effects a new UK/US trade deal could have on their livelihoods. This agreement would have serious impact on their livelihoods. With high standards for animal welfare and environmental protection in place, many are wary of how these regulations may be affected by negotiations. Joint statement issued by National Farmers’ Union for England, Wales, Scotland and Northern Ireland. Their call comes as the UK government continues ahead with negotiations.

The UK’s high food safety and animal welfare standards prohibits importing hormone-treated beef, pork, and chicken. This is in stark opposition to the status quo in the United States. The floodgates aren’t necessarily wide open, and a tsunami of lower-quality imports like the flooding currently happening at the cheese market could drown out U.S. producers. Giles Barber, one of the UK’s leading cheesemakers from Barber’s Cheddar Cheese, Somerset, has expressed his concerns over these negotiations. His family has been running proudly in Ditcheat since 1833. Nonplussed, they set about their work of making their company the UK’s largest operator of cheese to the US.

The new trade deal will increase the cost of UK-produced Somerset cheddar cheese in Texas. Tariffs are the largest driver of this increase. Laura Ward, a trade advisor to Barber’s Cheddar, said she was happy to see the first tariff rate set at 10 percent. She noted, of course, that they had prepared themselves for a doomsday scenario of 20%.

“When I heard it was 10%, I did breathe a very small sigh of relief,” – Laura Ward

As Ward explained, the implications of these kinds of deals go far beyond net costs. A large part of our competition produces in China. This would be an enormous mistake and close for decades America’s door to the game-changing economic opportunities presented by AI, soar,” she added. This frustration is emblematic of a larger fear plaguing the industry about competition and access to markets.

Keep in mind, negotiations are still ongoing. These numbers speak for themselves with 62% of UK firms exporting to the US at risk of experiencing significant downside effects if terms are not thoughtfully negotiated. Jonathan Reynolds, the Business and Trade Secretary, emphasized that maintaining the UK’s food standards regime is a “red line” in these discussions.

Barber similarly hailed the process as a victory, but called for care and diligence in the further negotiation to come. He cautioned that if they hurried into a deal with the US it would be damaging for British agricultural protections.

“Be careful, Sir Keir, I would rather see time and care taken over the terms of that deal than to rush into it,” – Giles Barber

The damage of tariffs goes beyond just cheese. The ongoing trade war between the US and EU previously led to a hefty 25% tariff on various European exports, further complicating the landscape for UK exporters. Barber recognized that after the initial launch there could be ups and downs in demand, but markets do tend to level out eventually.

“There will be a lot of price increases to the American consumer,” – Mr Barber

He stated, “Whilst we’ll see some impact up front, it will moderate over time,” suggesting a resilience within the industry that may help mitigate long-term consequences.

The UK’s commitment to not reducing standards has been echoed by the Prime Minister, Environment Secretary, and Trade Secretary recently. The presidents of the National Farmers’ Union for England, Wales, Scotland, and Northern Ireland have stated their opposition to allowing hormone-treated products into the UK market.

“Absolutely no one wants to see hormone-treated beef or pork or chicken treated with anti-microbial washes – which are banned here in the UK – sold on our market,” – Presidents of the National Farmers’ Union for England, Wales, Scotland and Northern Ireland

Sir Keir Starmer, the Labour Party’s leader, has joined in on the condemnation as well. And he promised that any trade deal would be in the national interest and put protecting domestic agriculture first.

As discussions progress, stakeholders remain vigilant about protecting British farming interests while navigating international trade complexities. Internationally, the UK government has recently committed itself not to lower any current standards in future trade deals. Farmers and producers have been raising increasing alarms finding that equilibrium between greater trade dividends and more robust, high-quality standards will be an exacting test.

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