On Monday, the European Union adopted quotas for farming produce that it will take from third nations, once Britain moves out of the bloc, acknowledging that it is likely to take place much before it has concluded talks with them on the matter.
At present, the EU has many ‘tariff rate quotas’ in place, which permit the agricultural producers, including Australia, the United States, Latin American countries, and New Zealand to ship some amount of live animals, diary, meat and other produce tariff-free.
However, the planned exit of Britain indicates that all such quotas would be divided between Britain and the rest 27 nations that continue to be a part of the European Union.
The 51 page-long EU regulation carries products and commodities from the 11,500 tons of beef from Canada and the United States, and 228,389 tons of lamb from New Zealand. Wood, fish, and some metals will also be included in the splits, being calculated on the basis of actual trade flows during a three-year long time span.
The European Union is required to discuss the fresh allocations with rest of the World Trade Organization members, showcasing a considerable interest in the same. The introduction to regulation read that the conclusion of these negotiations may not be reached due to the availability of short time, as Britain is going to exit the EU on March 29.
Many WTO members have raised concerns and questions regarding the typical nature of the 2013-2015 period. There are some cases, wherein the EU quota is 100%, including Argentine garlic, the sales of such products won’t be tariff-free in Britain.
Previously, in a 2017 letter, the United States, Thailand, Brazil, Canada, Uruguay, New Zealand and Argentina complained that reports regard the quota division would leave them worst hit as they would lose the flexibility they presently possess to sell products in any European Union country, such as Britain, depending on where the demand or price was highest.