Brexit and Agriculture

The Common Agricultural Policy (CAP) has been a cornerstone of the European Community since its formation. There are considerable complexities and uncertainties surrounding United Kingdom (UK) agricultural policy after Brexit. However, agriculture could be one of the sectors hardest hit by Brexit, depending on the eventual settlement that is reached. A report produced by the Agriculture and Horticulture Development Board (AHDB) on prospects for the grain sector after Brexit emphasizes that the global grain trade is driven by competitiveness. A free trade agreement (FTA) with the European Union (EU) after Brexit is the UK's preferred solution. However, agriculture is unlikely to be the UK Government's priority in the negotiation of any such agreement. They are likely to be more concerned with the fate of financial services and industries such as pharmaceuticals, aerospace and motor vehicles, all of which account for a higher proportion of Gross Domestic Product (GDP) and rely on integrated supply chains.