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Workers display fruit and vegetable stalls at Watney Market in London, March 2024.
London CNN —
UK business groups have warned that newly announced post-Brexit levies on plant and animal imports could push up food prices soon after food inflation has fallen from double-digit levels. There is.
From April 30, UK businesses will have to pay up to £145 ($184) for every delivery of most animal products, plants or plant products imported from the European Union through the Port of Dover and Eurotunnel (Environmental・Ministry of Food and Rural Affairs) said on Wednesday. Ports and undersea tunnels under the English Channel handle the majority of food imports from the UK.
Importers must pay £29 ($37) for each type of product, and up to £145 for a single shipment containing several different products.
In practice, this means that, for example, a truck carrying a single type of meat will incur a charge of at least £29, while a truck of the same size carrying different meats, yoghurts and cheeses may incur the highest charge. It means that there is a gender. You may also be required to pay that maximum amount multiple times, depending on the origin and destination of your truck.
Tom Southall, deputy chief executive of the Cold Chain Federation, which represents British companies that deliver fresh food that requires refrigeration, said the charges were “likely one of the factors that will stop food inflation from continuing to fall”. Probably.''
This comes as UK importers are likely to pass on the new surcharges to consumers, as industry bodies have warned.
The UK's annual food price inflation rate exceeded 19% in March 2023, the highest rate in 45 years, and most recently exceeded 10% in October. In February, it fell to 5%.
William Bain, head of trade policy at the British Chambers of Commerce, said the new charges were “a real blow to Britain's small and medium-sized importers” and “deeply worrying for retailers, cafes and restaurants”. ”
“We urge the Government to reconsider its import tariff plans in the coming days. Failure to do so will result in lower prices for all of us at a time when we need to reduce business costs and food price inflation. There is a risk of an increase.”
Smaller European exporters could also be hit hard, Southall said, as British companies could ask these exporters to cover some of the additional costs.
He told CNN that “some people have already decided that it is too expensive or too onerous to provide services to the UK.” The supply of most products in supermarkets will not be affected, but the availability of “smaller specialty products” will be affected. “[Britons]may not have such a well-stocked cheese and meat deli counter,” he added.
The new charges are aimed at helping the government cover the costs of running border facilities post-Brexit and come into force on the same day that physical checks are introduced for many animal and plant products from the EU. Ru.
Industry groups have also criticized the lack of time given to companies to prepare for the latest changes.
James Burns, chairman of the Horticultural Trade Association, said Wednesday's announcement was made at the “eleventh hour” and said: “In just a month, the competitiveness of British horticulture has been hit again by rising costs with no material benefit. “I think it will be a good deal,'' he acknowledged.
“This fee will undoubtedly increase costs, reduce consumer choice and potentially increase the likelihood of empty shelves,” he said in a statement.
The association represents approximately 1,400 retailers, growers, manufacturers and landscapers that rely on imported plants.
A government spokesperson said the new charges were “at the lower end of the range” discussed with British businesses during the consultation period last summer.
The £145 cap was “set specifically to support small businesses,” a spokesperson told CNN. “We are committed to helping businesses of all sizes and sectors adapt to new border controls and keep imports flowing smoothly.”