The referendum that saw the United Kingdom vote to exit the European Union has brought considerable uncertainty and volatility to the country, region and world. There’s little doubt that the seafood industry will be strongly affected by the electorate’s Brexit decision. Here are five essential questions the U.K. seafood industry must consider post-Brexit.
Question 1: What will happen to access rights for U.K. and foreign fishermen?
In the E.U., fishing fleets are given equal access to E.U. waters and fishing grounds up to 12 nautical miles from the coasts of member states under the Common Fisheries Policy (CFP). The pro-Brexit U.K. Fisheries Minister, George Eustice, made no secret of his desire to take national control of the country’s waters between 12 and 200 nautical miles and to get control of the resources within that Exclusive Economic Zone (EEZ). What needs clarification now is whether foreign vessels will be allowed access to the EEZ. If so, mechanisms will need to be established on catch limits. If not, will U.K. fishermen lose their current overseas fishing rights as well as their access to key European landing ports? Equally important, of course, is a process for repatriating all the fishing regulations and relevant powers held by Brussels to U.K. rule-makers.
Question 2: What will happen to seafood imports and exports?
The United Kingdom imports some 70 percent of the fish it consumes. In volume and value terms, this equates to more than 677,000 metric tons (MT) with a value of GBP 2.7 billion (USD 3.5 billion, EUR 3.2 billion). It also exports around GBP 1.3 billion (USD 1.7 billion, EUR 1.5 billion) worth of its catch annually, with a large proportion of this going to E.U. markets, as well as around 40 percent of Scotland’s farmed salmon production. As all E.U. member states have access to the single market, there are no tariffs, quotas or taxes on trade and the free movement of goods, services, capital and people. Therefore, the United Kingdom will need to establish new trading arrangements and tariffs with the E.U. and other countries across the world. To give some indication of the latter’s scale, the E.U. currently has trade deals in place with 52 external countries. In the meantime, given that the U.K. currency has been significantly weakened following the Brexit vote, it’s feasible that there should be some stimulation in overseas trade. Although by the same token, imports could become increasingly expensive and affect consumption levels.
Question 3: What will happen to overseas workers employed by the U.K. seafood industry?
Because non-nationals make up a sizeable part of the catching and processing sectors’ workforces, they are an important resource for many seafood companies. While E.U. nationals who are currently living and working in the United Kingdom are permitted to stay, the U.K. government is being called upon to establish clearly defined policies on immigration that focus on the needs of businesses and their access to skills and manpower. Clarity is also needed for multinational companies and international organizations based in the country with multinational teams.
Question 4: What will happen to the funding currently provided by Brussels?
This year, the United Kingdom's maritime, fisheries and aquaculture sectors got access to a European Commission’s (EC) investment package amounting to EUR 310 million (USD 343.5 million) under the European Maritime and Fisheries Fund (EMFF) for the period 2014 to 2020, including EUR 243 million (USD 269.3 million) of E.U. funds. Some of this money was to help the U.K. fleet’s transition to sustainable and discard-free fisheries, while across the fisheries, aquaculture and processing supply chains, funds were targeted at innovation, onshore and offshore infrastructure and the efficient use of natural resources. The package also had the aim to make it easier for small businesses to get access to capital. Certain sections of the industry will now be concerned that no shortfalls emerge in this funding or in the number of future projects put into development.
Question 5: Will catch quotas rise?
It’s widely accepted that most commercial fishermen were in favor of Brexit. Getting quotas and fisheries access tailored to U.K. fishing fleets, rather than compromise arrangements with other member states, were the primary motives for their “Leave” allegiance. Indeed, they were assured by Minister Eustice that there would be improved catch packages in many important fisheries and that the country would be better placed to negotiate better deals in the future. Understandably, many fishing industry leaders are now calling for more clarification on these promises as well as greater input on making the new rules that will lead to these enhanced fishing opportunities.
Unfortunately, as the country is still to appoint a new prime minister who will then be tasked with invoking Article 50 of the Lisbon Treaty, it’s impossible to say at this stage when exactly any of these questions will be answered, let alone what the answers will be. Indeed, as the United Kingdom is first country to leave the E.U. bloc since its formation, nobody seems sure how Article 50 and the extrication process actually works. Therefore, for the time being at least, the U.K. seafood industry’s horizon will remain clouded by ambiguity and speculation.
