by Alex Waugh, Director General, nabim, United Kingdom
As we enter extra time in Brexit discussions, with an extension of full UK membership of the EU until October 31st to allow time for a conclusion, what are the future prospects and implications for the flour milling industry?
As we enter extra time in Brexit discussions, with an extension of full UK membership of the EU until October 31st to allow time for a conclusion, what are the future prospects and implications for the flour milling industry?
The negotiated deal
The deal reached between the UK and EU negotiators – which has been rejected three times in UK Parliamentary votes - would do three things if it is ratified:
• Unlock a transition period during which the UK will no longer be a member of the EU and will forfeit rights of representation in the Council and the European Parliament, but will, in almost all respects, be treated as if it were a member. This period will last until the end of 2020, although it can be extended by up to two years.
• Establish some aspirations for a future relationship between the UK and the EU. It foresees a comprehensive free trade agreement with no tariffs on goods in either direction but could also allow for much closer regulatory alignment and/or a formal customs union (see below).
• However, it also contains a backstop position, which would
apply at the end of the transition period unless it were superseded by an
agreement with which both sides are happy. The backstop is designed to prevent
the re-emergence of a hard border in Ireland and would mean that all of the UK
was within a customs union for goods (except fish), ie no tariffs; and
regulations applied in Northern Ireland would mean that no checks were required
in North-South trade on the island of Ireland.
There would also be no checks required on trade from NI to mainland GB, although some would most likely be required on trade from GB to NI, and also between GB and the Republic of Ireland.
The backstop provisions are politically controversial, as some people don’t like the idea of the UK being tied to a customs union with the EU, and others don’t like the special status accorded to Northern Ireland seeing it as either a division in the UK or an exception that favours one part of the UK over others.
There would also be no checks required on trade from NI to mainland GB, although some would most likely be required on trade from GB to NI, and also between GB and the Republic of Ireland.
The backstop provisions are politically controversial, as some people don’t like the idea of the UK being tied to a customs union with the EU, and others don’t like the special status accorded to Northern Ireland seeing it as either a division in the UK or an exception that favours one part of the UK over others.
Read more HERE.
The Global Miller
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