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UK fish processing operations could move to European countries after Brexit, warns expert
UK fish processing operations could move to European countries after Brexit, according to an industry expert. Kristen Hopewell, a senior lecturer in international political economy on trade at Edinburgh University, warns tariffs could push prices too high and force companies pursue plants within the EU market.
“As soon as Brexit happens, trade will jump to World Trade Organisation levels. This puts British companies at a huge disadvantage, and I expect they’ll have to relocate and process fish in Europe in order to continue” Dr Hopewell was talking to MPs on Westminster’s Scottish Affairs Committee on Tuesday.
Companies may move operations to other EU countries The lecturer said companies from Norway, which moved to Peterhead to access the single market, would likely move again – even in the case of a soft Brexit.
“We may well see Scotland’s fish processing industry move to places like Poland in order to access the rest of the market tariff-free”, said Dr Hopewell. Dr Hopewell told i that all fishing ports would be affected by a huge tariff increase, and even British companies established here may look to process fish in nations on the continent. Even long-established, relatively smaller-scale businesses such as those in Newyln, Cornwall, or Poole, Dorset, may have to look at alternative sites, it has been suggested.
If a free trade deal for fish and seafood for Britain is not reached, said Dr Hopewell, export tariffs will jump from 0 to up to 24 per cent. Tariffs depend on species and country.
Currently, 75 per cent of all exported fish (we export 70 per cent of everything we catch) from the UK goes to Europe. “Many companies will not be able to compete if they face higher tariffs,” said Dr Hopewell. “As soon as Brexit happens, trade will jump to World Trade Organisation levels. This puts British companies at a huge disadvantage, and I expect they’ll have to relocate and process fish in Europe in order to continue. “Boats might fish in British waters but will have to process on the continent”.
Seafish figures on fish processing in the UK: In 2016 the UK sea fish processing industry provided around 13,554 full-time jobs across 307 units. The industry is consolidating with the number of sites reducing and average employment per site increasing over the last five years. Humberside and the Grampian region of Scotland dominate the sea fish processing industry in terms of full-time equivalent employment (over 60% of total industry employment in 2016 located within these regions). In 2014 the industry had an estimated turnover of over £3 billion of which £184 million was operating profit. In 2014 the industry contributed over £550 million in Gross Value.
The fishing community has been one of the more vocal pro-Brexit camps since the EU referendum, though there have been some suggestions some fishers now feel mislead, as uncertainty around trade continues. While the referendum was being debated, fishing communities argued that they got a bad deal from Europe, as ‘foreign’ boats could fish in British waters, but tough quotas were put on UK vessels in terms of what could be caught, and how much of it may be landed. It is primarily for this reason fishers backed Brexit – in order to leave to Common Fisheries Policy.
In doing so, they lose zero per cent tariffs on exports. Dr Hopewell said she thinks negotiated new policy terms might have been a more appropriate solution. Fishing industry believes this won’t be the case This is not a view shared by everyone in the industry. Scottish Fishermen’s Federation chief executive Bertie Armstrong said leaving the Common Fisheries Policy is a ‘Sea of Opportunity’ in response to a report on fishing policy by the Scottish Government.
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