US Trade Deal Sparks Concern Among British Farmers and Food Producers

Strategic Insights -

The US trade deal announced last week, which aims to expand access for US beef and bioethanol producers to the UK, has raised concerns among British farmers and food producers. Brooke Rollins, a senior US official, indicated that pork, poultry, and other sectors are "at the front of the line" in negotiations to build on the deal, which has been touted as a $5 billion opportunity for US farmers and ranchers. However, the initial text of the accord covers only about $950 million of trade in hormone-free US beef and ethanol, sparking worries about potentially being undercut by cheaper US imports that might not meet UK or EU production standards.

Key Takeaways:

  • US Trade Representative Brooke Rollins said that sectors like pork, poultry, and seafood are "at the front of the line" in negotiations to build on the outline trade deal announced last week.
  • The initial text of the accord covers only about $950 million of trade in hormone-free US beef and ethanol, leaving many concerns about the impact of cheaper US imports on British farmers and food producers.
  • Rollins suggested that some US exporters may adjust to meet British expectations, but Richard Griffiths, British Poultry Council chief executive, expressed unease about allowing imports produced to standards beneath those of the UK and EU.
  • The UK has high tariffs on many agricultural products, including up to 72 pence per kilogram on pork and 107 pence on poultry.
  • Rollins stressed that "only about 5 per cent" of US chicken is now washed with chlorine, but Griffiths countered that it's standard practice among US producers to clean up with chemical washes, including chlorine.
  • The government has insisted that chlorinated chicken and hormone-treated beef will remain illegal in Britain, but Rollins said that beef producers might be prepared to ditch hormones to sell to the UK.
  • The bipartisan trade deal is also intended to boost UK exports, with Rollins pointing out that the UK relies on China and Russia for its seafood, and America has "extraordinary best-in-class seafood."

Statistics:

  • The US trade deal aims to expand access for US beef and bioethanol producers to the UK, but the initial text of the accord covers only about $950 million of trade.
  • The tariffs on agricultural products in the UK include up to 72 pence per kilogram on pork, 107p on poultry, and 18 percent on shrimp.
  • Only about 5 percent of US chicken is now washed with chlorine, according to Rollins.
  • 95 percent of US chicken is not washed with chlorine.

Sources:

  • Brook Rollins, as quoted by various news sources
  • Richard Griffiths, British Poultry Council chief executive, as quoted by various news sources
  • UK government statements on the trade deal, including the Department for Business and Trade.