El agreement reached between the European Commission and the United Kingdom, which will govern the commercial relationship between both parties as of January 1, prevents the Spanish export of fresh fruit and vegetables from being taxed with 198 million euros in customs duties. Satisfaction and relief for the sector grouped in FEPEX, given the importance of the British market, where it is expected to close 2020 with exports of 1.950 billion euros.

If the EU and the United Kingdom had not reached an agreement, Spanish exports of fruit and vegetables to this country would have been seen taxed with the corresponding customs duties established in the World Trade Organization (WTO). The amount of these rights varies by product and period; 16% in the case of peaches, 14% in tomatoes, 10% strawberry or lettuce…. representing an average of 11,5%, according to FEPEX, which would have meant bearing customs duties amounting to 198 million euros.

Relief, therefore, for the sector grouped in FEPEX, which congratulates the negotiating teams of the European Commission and the United Kingdom and that they have finally managed to reach an Agreement. However, a new competitive scenario opens, anticipating an increase in competition from third countries, since the United Kingdom has already signed trade agreements with a large group of countries. Faced with this situation, measures are required to improve the competitiveness of the sector, which is the great challenge it faces, given the difference in costs compared to third countries and in returns compared to EU countries.

Despite the signing of the agreement, from January 1, after the transitional period has concluded, the United Kingdom will definitely be a third country, which represents a fundamental change in the model of relations with this country, implying that the export will be subject to new documentary obligations and controls, which in the fruit and vegetable sector are the customs declaration, the certificate of compliance with the marketing standards and the phytosanitary certificate.

There is a strong economic dependence on the fruit and vegetable export sector of the United Kingdom market, the third destination, Germany and France, with sales forecast for this year of 1.950 billion euros, 8% more than in 2019, according to FEPEX.

In 2019, exports to the United Kingdom amounted to 1,5 million tonnes and 1.780 billion euros. It represented 15% of the total sold abroad by Spain and 9% of the total fruit. A wide range of products are exported throughout the year, highlighting cabbages with 150 million euros, pepper with 125,6 million euros, tomato, with 117 million euros and lettuce with 116 million euros. In fruit, the mandarin with 154 million euros, the raspberry with 125 million euros, the grape with 102 million euros and the strawberry with 96 million euros stand out.

COEXPHAL celebrates the agreement

The Association of Organizations of Fruit and Vegetable Producers of Almería, COEXPHAL, has celebrated the agreement reached for post-Brexit trade relations between the European Union and the United Kingdom.

For Luis Miguel Fernández, manager of COEXPHAL “It is a good reason to congratulate the negotiating teams that reached this agreement on the 24th in regard to fruits and vegetables, but we do not stop being concerned about the new situation that is emerging. The British country will be a third country as of January 1 and therefore exports will have to undergo this condition with new procedures in customs declarations, phytosanitary certificates or certificates of conformity with respect to marketing standards. "

In turn, the President of COEXPHAL, Juan Antonio González It also celebrates the agreement reached between Europe and the British country, and also warns about the new panorama that is presented before which the competitiveness of our products must be increased. “It is known to all that the United Kingdom has already signed trade agreements with countries such as Turkey or Morocco, countries that are in direct competition with Almeria products and that have costs much lower than ours. Therefore, we cannot lower our guard in that regard ”.

COEXPHAL will continue to monitor the relationships from now on, given the importance of this fruit and vegetable market, which at the national level represents 1,5 million tons, of which 20 percent come from Almería.

It is important, remember from COEXPHAL, to know well and be prepared to carry out all the administrative procedures in a timely manner as of January 1, 2021. It is also necessary to continue advancing in the commitment that the Spanish Government acquired with the fruit and vegetable sector in order to have a “one-stop shop” before the end of 2021 that streamlines all the procedures for fruit and vegetable exporters to the United Kingdom.