SCOTTISH foods and drinks sold in Europe could be hit by a 50% price hike after Brexit, an industry body has claimed.
The CEO of Scotland Food and Drink spoke about the impact leaving the EU could have on the sector, particularly if the UK does not agree to a trade deal with the bloc.
Jamie Withers said the sector, which is worth £15 billion each year to Scotland's economy, has been "haunted" by the "spectre of No-Deal Brexit" since the 2016 referendum.
He warned that if no agreement is reached with the remaining 27 EU nations on trade in the coming months then this could linger on.
For the UK's transition period to be extended beyond the end of 2020, work would need to begin in the summer. But Withers said that leaves the UK with a "little over 20 weeks to frame a trade deal with the EU".
READ MORE: Chancellor Sajid Javid confirms post-Brexit 'race to the bottom'
He went on: "In other words, we're in seach of a miracle."
Speaking ahead of a Brexit event in Edinburgh, he added: "It feels like the very thing we feared and have been told has been avoided may now be facing us at the end of the 2020."
He said even if a deal could be agreed, the UK Government's "strategic shift" away from alignment with EU regulations has served to "kill off any hope of achieving frictionless trade or anything close to it".
Withers warned: "Tariffs anywhere close to WTO levels could increase the price of our products in the EU market by more than 50%.
"Costly new checks and processes - and potentially tariffs on some of our food products - will act as a major new barrier to trade with our biggest single export market.
"Scotland sold £2 billion of food and drink to the EU last year, and with ingredient imports flowing the other way, the implications of barriers to trade cannot be overestimated."
Withers stressed the importance of frictionless trade, particularly for perishable foodstuffs.
Around 7.5% of all sales of red meat from Scotland go to Europe, while exports to the EU make up a quarter of all lamb sales, the industry body said.
Withers said: "While seafood doesn't face the same scale of tariff threat, additional bureaucratic costs and the associated risk of delays is a real concern."
READ MORE: Brexit: SNP say Johnson 'in total denial' over no deal impact on farmers
New trade agreements with countries outside of Europe could be the "silver lining to what looks like a very dark cloud" for the industry - with Scotland Food and Drink highlighting the work of Quality Meat Scotland to develop sales of red meat in places such as Canada, the US, China and Japan.
"While they won't compensate for the loss of free trade with the EU any time soon, it is an area that could significantly strengthen Scotland's global culinary reach," Mr Withers said.
He said trade deals could also pose risks, stressing it was vital "we do not engage in a global race to the bottom in the standards and protections we set for what we eat and drink".
"Scotland's food and drink sector has been forging a reputation for premium food and drink for decades and we should be setting the gold standard for animal welfare, environmental protection and food safety," he said.
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel