Brexit
1 mins | May 10, 2021

Geopolitics and border controls

“‘Chlorinated’ U.S. Chickens Convince British Consumers the Sky Is Falling”. That’s a real recent headline published in the New York Times. And it actually points to a serious issue about trade policy.

Geopolitics and border controls

“‘Chlorinated’ U.S. Chickens Convince British Consumers the Sky Is Falling”. That’s a real recent headline published in the New York Times. And it actually points to a serious issue about trade policy.

Since Brexit, UK officials have more leeway to determine customs policy. That means that the UK does not have to conform to EU standards when importing agricultural goods. Consequently, consumers could, in principle, see ‘chlorinated’ American chickens on UK shelves.

 

The politics of trade

From a consumer point of view, that is either a good or bad thing, depending on whom you ask. Some observers caution that the relevant US food safety protocols are less effective than EU standards. US industry officials claim otherwise. (They also point that chlorine is now less frequently used by American producers. According to the New York Times report, peracetic acid is now favoured as a disinfection agent for US chicken products).

From a global trade point of view, things are even more interesting. As noted, Brexit in principle gives the UK more leeway to determine its own import procedures.  In reality, those decisions are never made in isolation. They need to be crafted with an eye to enhancing bilateral and multilateral trade. 

 

Managing a multilateral world

As post-Brexit negotiations continue, the more closely the UK and EU can align their protocols, the less friction there will be on trade. 

But in the real world, that’s easier said than done. As the FT notes, some EU officials assume the UK is loath to align its veterinary inspection protocols with the EU’s because the UK is seeking a trade deal with the US. Such a deal would likely depend on permitting the import of goods such as hormone-fed beef and those infamous chlorine chickens. Neither of which would be permitted under EU regulations. 

As a business, that ultimately means that if you trade in agricultural goods - if you manufacture pet food or import frozen chicken pieces - your business model may ultimately depend on high level negotiations in London, Brussels, Washington and other world capitals. 

 

The big picture and the fine details

Global trade is so complex precisely because of the interplay between high-level diplomacy and a multitude of complex bureaucratic rules and practices that shape the terms of trade. And while you can’t predict the future, you can develop more resilient supply chain solutions that future proof your business. 

re:TRADE, powered by VAT IT, leverages decades of experience and a network of on-the-ground contacts to help your business adapt to regulatory changes in real time. Get in touch with re:TRADE for a more robust and adaptable supply chain solution. 




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