The European Union and Great Britain have not yet reached an agreement on the principles on which trade will take place between countries – the expert of the Institute of Agriculture and Food Economics Łukasz Ambroziak told PAP. The United Kingdom is the third largest trade partner for Poland, and in the case of food – the second.
Negotiations on cooperation in new conditions have been going on since February, they have been conducted despite the pandemic, but nothing has been established so far – the expert informed. He added that the positions of the European Union and Great Britain regarding further cooperation are “so far” divergent. “There is also no will to communicate, each of the parties remains with its concept,” he added.
Ambroziak pointed out that the agreement on Great Britain with the EU gives the possibility of extending further negotiations by up to two years, but the British prime minister does not want to drag the conversations and does not agree to concessions.
According to the Union expert, the script suits the most that cooperation with Great Britain takes place on the current principles, i.e. those that apply this year, during the transitional period; Great Britain is part of the common market, there are no duties, there is a free flow of goods, services, capital and employees and it is treated – as a rule – still as a Member State.
As he said, a much worse scenario, at least for the EU, is the so -called Hard Brexit, i.e. the introduction of border controls, duties, etc. The British are interested in “escaping from this regulatory umbrella of the Union”. They do not want to agree to the EU conditions, because the whole idea of Brexit was such that the country wants to be independent.
The current position of the British government indicates that a free trade agreement will be the preferred form of cooperation.
According to Ambroziak, if the contract is not concluded, the duties will come back. This is not beneficial for trade. EU duties on the import of some goods, e.g. agri-food or automotive goods, are not very liberal, and Great Britain depends on the export of such goods. In turn, the British will also introduce a customs tariff, which will affect – in the case of Poland – mainly Meat products and their products and dairy products.
Ambroziak also pointed out that talks with the British also concern how to treat trade with Northern Ireland. “And this matter is very complicated,” he noted. In addition, the EU wants the United Kingdom, although not a member of the community, to respect standards and standards that apply in the EU, e.g. regarding employee matters or environmental protection.
“The position of Great Britain is not conducive to reaching compromise, and the differences are fundamental. The conclusion of such an agreement this year seems very unlikely” – said Ambroziak.
In the opinion of the Ministry of Agriculture, “at this stage it is impossible to determine what the EU relations will look like from January 1, 2021. It is certain that they will not be the same as today and in trade with Great Britain, additional responsibilities and restrictions will appear.
According to the Ministry of Agriculture, it cannot be ruled out that by the end of 2020, future relations between the European Union and the United Kingdom will not be regulated. Then mutual economic relations will be based on the principles of the World Trade Organization, which means, among others Introduction of customs and customs controls (as currently for countries outside the European Union), changes in the principles of VAT settlement, excise tax, the need to adapt entrepreneurs and exporters to British regulations, restrictions for transport companies, etc. It is also possible to negotiate a contract for only part of mutual areas and leaving other areas without a contract.
Negotiations should be completed by October 15.
The United Kingdom is our third largest trade partner, and in the case of food – the second. In 2019 (preliminary MF CIHZ data), the value of Polish exports of agri-food products amounted to over EUR 2.7 billion, and the balance was added at the level of EUR 2.1 billion. Food exports to W. Britain accounts for 8.9 percent. all exports of these products against 9.3 percent In 2018, in the first half of 2020, the value of food exports to Great Britain reached EUR 1.5 billion, i.e. it accounted for 9 percent.
The main export position is meat, primarily poultry, and its products. Next – are chocolate and products containing cocoa, bread, confectionery and cakes, fresh and chilled vegetables, as well as various types of dairy products, including cheese and cottage cheese and so -called Milk haberdashery.
Author: Anna Wysoczańska
