In the response, NFU Cymru welcomes the initiative and says that an effective strategy that sets out coherent and consistent trade policy principles is long overdue. Increasing global insecurities and the return of trade protectionist policies mean developing a comprehensive trade strategy that places domestic producers at its heart, is not only prudent, but also essential to uphold the nation’s security.
The proportion of food consumed in the UK that is produced by British farmers is increasing. However, we remain a net importer of agri-food products and our balance of trade (the difference between UK agri-food imports and exports) continues to widen, consistently running at around £3bn per month. Whilst there has been recovery in our exports since Brexit and the pandemic, NFU Cymru believes there is more that can be done. For Welsh farmers, the EU remains our most important international customer with 75% of exports of Welsh food and drink destined for the trading bloc.
In the response, NFU Cymru set out six principles which we believe should be included in the UK Government's future trade strategy:
- Consistency of UK trade and agriculture policies – international policy and domestic policy need to be compatible and should complement each other recognising shared aims.
- An unwavering commitment to the UK’s reputation for high standards – UK Government should set core standards that apply to food grown domestically or imported. Trade policy should not allow UK farmers to be undercut by lower standard imports, nor should it allow us to offshore our commitments on the environment or animal welfare. We should also maintain all our existing protections for food safety, animal health and plant health.
- Prioritise balanced trade deals – we should look to agree trade deals which offer commercial opportunity for our exports whilst protecting our more vulnerable sectors using tools like quotas and tariffs. We should also look to pursue a better trading relationship with the EU.
- Enhance transparency and trust – publish full economic impact assessments before trade negotiations commence and publish an annual assessment on the cumulative impact of the trade deals we have agreed. UK Government should engage with stakeholders early on and throughout trade negotiations. We also call for a Wales specific impact assessment to be carried out and for more engagement with devolved administrations.
- Encourage collaboration and maximise overseas reach – bring industry and government together to focus on the opportunities to grow exports and address barriers to growth. The UK network of Agri Attachés should be strengthened in key markets and UK negotiators should secure protection and recognition of our Welsh Geographical Indicators, such as PGI Welsh Lamb and Beef, in more overseas markets.
- Accountability to deliver the strategy – appoint a government minister with the exclusive responsibility for championing agri-food trade and competitiveness, working across government and with the devolved administrations to deliver this strategy.