Saving Seafood

EU fishermen to be compensated for a ‘no-deal’ Brexit

March 22, 2019 — In order to help mitigate the impact of a “no-deal” Brexit on European Union fisheries, a new regulation will allow member states’ fishermen and operators to receive compensation under the European Maritime and Fisheries Fund (EMFF), the European Council has confirmed.

The contingency measure is one of a series of new legislative acts adopted by the council in preparation for the United Kingdom’s departure from the E.U. without agreements in place about what the future relationship would look like. The compensation would be to offset the temporary stop of their activities in the event of a sudden closure of U.K. waters to E.U. fishing vessels.

These new acts are aimed to limit the most severe damage caused by a “disorderly Brexit” in specific sectors where it would create a major disruption for citizens and businesses, the Council said. The measures are temporary in nature, limited in scope and will be adopted unilaterally by the E.U.

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UK strikes Brexit deal with two of its biggest seafood partners

March 21, 2019 — The United Kingdom has reached a temporary agreement with Norway and Iceland that allows trade to continue unchanged should it leave the European Union without a deal in place.

Through the new arrangements, which mimic those already in place with E.U. member states, zero tariffs remain on established quotas on seafood and agricultural products. A basis for negotiating a permanent agreement was also established.

The agreement is now subject to final legal checks and is expected to be formally signed next week.

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Brexit may not have desired outcome for UK fishermen, but US could see upside

January 25, 2018 — The exit of the United Kingdom from the European Union – colloquially known as Brexit – doesn’t pose a major threat to American exporters, and it could provide some upside, according to Rabobank Global Seafood Industry Senior Industry Analyst Gorjan Nikolik.

Speaking at the 2018 Global Seafood Marketing Conference on Wednesday, 24 January, Nikolik laid out the three most probable scenarios facing Great Britain in its move away from the E.U.: a hard Brexit, a soft Brexit, or a soft-ish Brexit with a free trade agreement. Nikolik dismissed a fourth option, “Bremain,’ where the U.K. reverses course and decides not to leave the E.U., as doubtful and not likely to cause major change to existing trade.

A “hard” Brexit, in which the U.K. would break off from the E.U. without any negotiated special agreements, would be “the worst outcome for everyone,” Nikolik said. Trade barriers would be high, the price of imported goods would increase by an estimated 11 percent, the total labor force in the U.K. would decline by 1.3 million people by 2030, and the British pound would lose approximately 30 percent of its value, according to economic modeling cited by Nikolik.

On the other hand, a “soft” Brexit would sustain many of the U.K.’s ties to the E.U., potentially including its continued membership in the continent’s single market. Under this scenario, prices of imported goods would rise by an estimated three percent and the British economy would grow by a predicted 1.6 percent annually, as opposed to 1.3 percent under a hard Brexit and 2.1 percent under the “Bremain” scenario.

E.U. negotiators will push back hard against efforts for a truly soft Brexit, Nikolik said, as it gives too much away while clawing back little in return. Nikolik’s pick for the most probable outcome is a soft Brexit with a free trade agreement.  Such an agreement would result in an estimated 700,000 fewer laborers working in the U.K., and hike the cost of imported goods by around six percent, Nikolik said. It would also result in a 1.6 percent expected GDP growth rate, he added.

Read the full story at Seafood Source