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Fearing the breakdown of the British-European trade negotiations, British business people began to hoard food.

Fearing the breakdown of the British-European trade negotiations, British business people began to hoard food.

photo by getty

December 13th

British media reports that British merchants and people are hoarding food to cope with the threat of rising prices or food shortages in Britain after a no-deal Brexit.

At present, both Britain and Europe say that the possibility of reaching an agreement has become less and less.

According to the British media Walesonline, John Allan, chairman of Tesco, warned on Wednesday (9th) that the supermarket was hoarding non-fresh food to cope with the emergence of “worst-case scenario”.

Allen warned earlier that leaving the EU without a trade agreement may mean that the shelves of domestic supermarkets in the UK are empty and the price of goods will rise. Allen also said that if the UK leaves the EU without a trade agreement, goods coming in from the EU will be subject to tariffs, which may be considerable in some foods.

Allen said this when Johnson and the European Union were accusing each other of “unacceptable” of their terms, which caused concern about the collapse of the Anglo-European trade negotiations.

Johnson and European Commission President von der Leyen said on the 11th that Britain is likely to complete the Brexit process without a trade agreement within three weeks. Both Britain and Europe have previously expressed their hope to reach an arrangement to cover the annual trade volume of nearly $1 trillion.

As a consequence, hundreds of trucks have accumulated on the French coast of the English Channel, and drivers have to wait hours to board the ferry or freight train through the European tunnel.

The transportation system connecting France and Britain cannot cope with such a large number of freight. The French National Road Transport Federation explained the rush to buy across the Strait: “The British are hoarding their stockpiles, anticipating the difficulties of Brexit.

The problem lies in the administrative procedures at the border, including customs declarations and possible customs duties. So in the past three weeks, you can see the traffic to the UK increasing.”

It is reported that if there is no trade agreement, the UK will implement new tariff rules after formal Brexit. This rule may impose quotas and tariffs, which may raise the prices of food, medicines and other imports from EU countries.

Supermarkets and their shoppers will face a food and beverage tariff bill of £3.1 billion a year. Starting from the beginning of 2021, the average British family will also pay an additional 4% for the purchase of fruits and vegetables.

A survey by the British Convenience Stores Association shows that the biggest concern of retailers about the impact is the potential impact on prices. About 41% of retailers surveyed said they were most worried that the price of products would soar when the UK left the EU next month.

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