What would a Brexit mean for the UK Food and Drink Industry?
By 31st December 2017, the UK Food Industry has to decide, along with every other voter, whether or not they wish to remain part of the EU. The underlying feeling is that it would depend upon the ability of UK ministers to deliver beneficial Free Trade Agreements. Britain’s exclusion from the EU single market could expose exporters to external tariffs with food and beverages facing surcharges of, on average, at least 20%.¹
All the exporting sectors would undoubtedly experience initial disruption and uncertainty in the event of UK withdrawal. On the flip side, the Food and Drink Federation has released figures showing that access to non-EU markets has opened up due to lower energy prices, resulting in lower operating costs for businesses and potential reductions in shipping costs for exporters. However, if a Brexit did happen, the focus of attention might shift away from the EU and towards the US and Asian markets.²