Blue Skies have written to the Chamber of Commerce to highlight how the business would be affected if the UK were to leave the European Union on the 29th of March without a withdrawal agreement. Such a scenario would mean the UK automatically trades on World Trading Organisation (WTO) terms, which would have immediate implications on customs arrangements and tariffs for goods entering and leaving the country.
The ‘no-deal’ scenario has attracted some support among factions of the ruling Conservative party and public figures including Wetherspoons boss Tim Martin, who argue that the UK would be better off without a deal and that many of the predictions for the economy are tantamount to scaremongering, or what some refer to as ‘project fear’ Chairman, Anthony Pile, said “This is not project fear, this is reality. Without a deal, Blue Skies and many businesses in the fresh produce sector would be subject to increased customs checks, severe delays at our ports and WTO tariffs. Where you’re dealing with highly perishable goods, this inevitably leads to empty shelves and higher prices. It’s simply not acceptable or responsible to be advocating a no-deal outcome”
Investment bank Goldman Sachs have increased their prediction on the chances of a no-deal Brexit from 10 to 15% following the UK Government’s vote in favour of renegotiating the EU’s withdrawal deal.
Anthony adds “While we still believe a no-deal brexit is unlikely, we have never-the-less made a number of contingency plans, however not everyone in the fresh produce sector will be in the position to do this. As the clock races towards March 29th, we must all take responsibility to highlight the facts on the consequences of a no-deal brexit to those who produce the food we eat, especially in the face of rising misinformation from those who believe we will be better off”
