None of the above: No proposed Brexit solution tackles the contentious “backstop,” European dairy chief warns

29 Mar 2019 --- The multitude of Brexit options debated in UK Parliament this week all fail to address critical questions concerning the Irish border. This is according to the Secretary-General of the European Dairy Association (EDA). As the political chaos in the UK continues and Brexit remains in deadlock, Alexander Anton, Secretary General, European Dairy Association (EDA) tells FoodIngredientsFirst how potential ideas to further the Brexit process “are exactly the same avenues that were discussed over the last two years” as part of official negotiations.

On the dawn of what would have been the original date of the UK’s exit of the EU, Anton stresses that none of the options heavily debated in the UK this week actually tackle the “backstop” issue. This is the so-called “insurance policy” to avoid the return of border checkpoints between Northern Ireland and the Republic of Ireland in the event a future trade deal is not agreed. The “backstop” remains a major sticking point in getting a Brexit deal approved by a majority of UK MPs.

Few sectors within the food and beverage industry will be more susceptible to the impact of a “no deal” Brexit scenario than dairy, with vast volumes of product moving between the UK and EU trading partners on a daily basis.

Alexander Anton, Secretary General, European Dairy Association (EDA)“All the technical options which were discussed at UK Parliament level have been intensively discussed at political and negotiators level during the last two years, but – for all I can see – these options basically all fail to give a clear answer to the most important and most critical question: which is the question of the Irish border and the ‘backstop’ that has been agreed on already in December 2017,” Anton explains.

The dairy industries of the UK and the EU27 are interlinked and interdependent, Anton notes, which is especially true for the dairy industry on the island of Ireland. Brexit has the potential to create a “completely new scale of a milk crisis,” claimed EDA chair Michel Nalet in a letter to EU Council President, Donald Tusk and member states last week.

“As a dairy industry, we had proposed as early as January 2018 our joint EDA and DairyUK position (The future EU – UK Dairy Framework), where we call for a solution as close as possible to Single Market conditions,” Anton continues.

Any set-up of the Withdrawal Agreement that allows the dairy sector to continue its EU28 success story in the UK and in the EU27 and hence builds a robust basis for the future relationship is welcomed, he notes.

“A ‘Common Market 2.0’ solution would fit, even a customs union could fit, while an EFTA/EEA membership of the UK would on its own not fit to our objective of a common market situation for milk and dairy,” Anton states.

Brexit deadlock
Earlier this week, the House of Commons (HoC) failed to find a majority for a way forward after voting for eight different options – including leaving without a deal, creating a customs union and backing a confirmatory referendum on any deal. However, none of the options surfaced as a front runner.

Having had her Withdrawal Agreement rejected by MPs twice – once in January and the other earlier this month – UK Prime Minister Theresa May did win some support after she vowed to quit before the next round of EU negotiations. But only if MPs approved her deal, otherwise she would remain in post. Having won the support of some, May has failed to convince all MPs.

MPs are due to vote again on the Withdrawal Agreement later today for the third time. This will secure a delay until May 22, if it passes.

Completion of EU’s no-deal preparations
Meanwhile, the EU has completed its preparations for a possible no-deal scenario next on 12 April. At the same time, the EU says it’s continuing to support administrations in their own preparations and urges all businesses to “continue informing themselves about the consequences of a possible ‘no-deal’ scenario and to complete their no-deal preparedness.”

This follows the European Council (Article 50) conclusions last week calling for work to be continued on preparedness and contingency. While a “no-deal” scenario is not desirable, the EU is prepared for it, the bloc claims.

In an interview with FoodIngredientsFirst earlier this year, Anton had warned of the “catastrophic” repercussions of a no deal Brexit on the highly integrated dairy sector.

By Gaynor Selby

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