Confectionery sector in state of uncertainty after Brexit vote
The Association of Chocolate, Biscuit and Confectionery Industries of Europe (Caobisco) has expressed dismay at Britain’s shock referendum vote to quit the European Union (EU), saying “this historic decision will have consequences across all member states”.
Laurence Vicca, communications and projects manager at Caobisco, explained with the UK pulling out of the single market, with the risk that tariffs may be levied on exports from its former EU partners, along with approving contrasting standards, continental confectionery exporters could suffer.
The UK is a key destination for continental EU exports of chocolate, biscuit and confectionery products, she explained, adding, “It is the second largest export market of Germany. Companies and, in particular SMEs, are therefore concerned that a separation would cause trade barriers and regulatory complications in the future.”
“European authorities and national governments must now take the necessary steps to reinforce the [European] Union, revamp the EU project and create a further step towards a more citizen-oriented EU project”.
She said the future health of the confectionery industry will to a significant extent rest on what trade agreements between the UK and the EU will look like going forward. A key question, she noted, is whether the UK will become a member of the European Economic Area (EEA), a half-way house membership, where the UK would retain many EU rules.
The general food industry has expressed disappointment. In March, the UK’s Food & Drink Federation (FDF) released results of a poll of its members and found that 70% supported Britain remaining in the EU.
Responding to the vote, FDF director general Ian Wright said, “It’s inevitable in the light of those results that the majority of FDF members will regard this as a disappointing result for the food and drink industry. Now FDF will work on behalf of our members and all those across our industry to find a way through this very challenging period that we face.”
He added, “We’ll focus on working with the government to understand what this means for trading, market access and regulation to secure the best outcome for British food and drink manufacturing business and their customers.”
