UK Wine and Spirit Trade Association CEO Miles Beale is urging the UK Government to boldly ‘pull out all the stops’ in its opening and ongoing Brexit talks with the European Union to avoid a cliff-edge ‘no deal’ Brexit.

 

WSTA CEO Miles Beale confirmed that the association ‘is pushing for a full negotiated divorce’ settlement’, as he emphasized that the WSTA’s 300 UK wine and spirit business members need sufficient time to prepare for the post-EU trading environment.

 

In a statement, he reasoned that Brexit ‘may result in a contraction of trade with Europe’ which will require the UK to seek and develop more non-EU trading partners.

 

NEW BILATERAL DEALS

This will obviously involve new bilateral free deals with third countries, including improved terms that could only be agreed once the UK has left the customs union.

 

Commenting on the scenario, Miles Beale said: “While there has been a great deal of speculation over recent days about what the election result means for Brexit negotiations, the WSTA’s position remains unchanged.

 

“We have long argued for a negotiated deal, including a full divorce settlement and agreement on the terms of the UK’s future trading relationship with the EU.

 

“It is essential that the UK secures transitional measures allowing sufficient time for the necessary systems to be introduced and properly tested.

 

“Ideally, a transition period would allow the UK to agree a Free Trade Agreement with the EU and then to make good progress on other bilateral FTAs with our major trading partners. Such a transition would give businesses time to prepare fully for a post-EU trading environment.”

 
CAN UK NEGOTIATE FROM A POSITION OF STRENGTH?
Despite its modest area size, the UK is currently the world’s second largest wine importer by both volume and value. As such, the WSTA says its most important goal for the wine businesses and the 277,000 UK jobs the industry supports both ‘directly and indirectly’ is for the UK to remain central to world wine trading, post-Brexit.

 

The WSTA emphasizes that the UK remains the largest exporter of spirits in the world, but its industry is only able to invest and grow if trade flows are secure.

 

Beale added: “Failure to agree terms resulting in a cliff-edge ‘no deal’ Brexit would be the worst possible outcome and totally unacceptable.

 

“This would inevitably lead to disruption to trade flows in the short term and significant uncertainty for business in the medium term – until trade deals with the EU and the UK’s other major trading partners could be agreed.”

 

He also encouraged the UK government to join the World Wine Trade Group to negotiate bilateral agreements with Australia and the US to replace current EU wine agreements with these countries.

 

Beale concluded: “While it is important to plan for the worst, it is also essential to work towards a negotiated outcome. The WSTA is doing all it can by engaging with our European trading partners. It’s vital that the UK Government does the same.”