Food and drink chiefs warn free trade 'critical' to economic recovery

Industry leaders launch blast against protectionism

Restaurants
Credit: Christopher Furlong/Getty Images Europe

World leaders must stand firm against protectionism and ensure that free trade of food and drink continues after the coronavirus crisis, industry leaders have warned.

Ministers must fight to keep goods moving around the world after the pandemic showed how essential global supply chains are for feeding consumers, the Food and Drink Federation (FDF) said in a letter co-signed by 30 trade bodies.

It comes amid concerns that Britain could face further disruption by the end of 2020 as time runs short to negotiate a post-Brexit free trade agreement.

Ian Wright, chief executive of the Food and Drink Federation, said: “Covid-19 is the biggest threat this country has faced in decades, and all over the world we are seeing its devastating impact.

“This global crisis highlights just how integral food and farming industries are to our country’s critical national infrastructure and Government has rightly acknowledged the crucial role played by the more than four million hidden heroes in every community that work across the UK’s essential farm-to-fork supply chain.

“Now more than ever, it is critical that we keep imports and exports of food and drink flowing. Essential movements of ingredients and raw materials must continue so that we can supply consumers across the UK.”

The UK exports more than £23bn of produce every year, according to the FDF, which includes the movement of ingredients and raw materials that cannot be processed in the UK.

Meanwhile, British farmers rely on imported feed and access to other markets to sell their products, the letter said, particularly in instances where there is lack of demand in Britain.

The UK is currently following Brussels rules as part of a transition period after leaving the European Union in January.

This is due to end later in the year, with the country set to switch to a new trading regime - but pressure is growing for a delay to the deadline as the Covid-19 pandemic wreaks havoc worldwide.

It came as the boss of Revolution Bars warned that further financial support must be provided to pubs and restaurants during the crisis to ensure the industries' 3.2 million jobs are secured.

The firm’s chief executive Rob Pitcher said the Government should ramp up its package of measures for the hospitality sector, and must particularly do more to help with property costs.

Last month the Government announced a £350bn package to support firms during the pandemic, including business rates and rent holidays. It also pledged to bring in new rules to prevent tenants being evicted from their premises.

But firms have reported hard-line stances being taken by some landlords which have threatened to take tenants to court over missed rental payments. 

Mr Pitcher said: "There is still more which needs to be done. 

“Specifically, this includes more support in connection with property related costs during this enforced closure period and beyond, including support for landlords themselves.

"We encourage the UK Government to take swift action in this respect.”

Pubs, restaurants and bars pay £39bn of tax a year, he said.

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