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Tuesday, 26 September 2017

UK to lose market share in seed potato exports to Egypt thanks to Brexit

EU seed potato producers are expected to swoop in and increase supplies to Egypt in place of UK exporters that would be at a disadvantage post-Brexit, according to a Rabobank research note. Egypt is the largest importer of seed potatoes, sourcing more than 70% of its yearly seed potato requirements from the Netherlands and the UK. “UK seed potato exporters will not only face a cost price disadvantage versus EU exporters due to a potential rise in import tariffs—an increase in non-tariff trade barriers can also be expected … EU seed potato producers are in the position to increase their market share at the expense of the more expensive post-Brexit UK producers to non-EU countries. However, to what extent EU producers will benefit depends on how fast the UK government will be able to close new trade [agreements] removing tariffs on seed potatoes after leaving the EU.”

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