The positive effects of Brexit agreement on Italy’s F&B, explained

After the no deal has been avoided, it will still be necessary to keep a close watch to avoid damage to Italian F&B products and to free and fair competition
The positive effects of Brexit agreement on Italy’s F&B, explained

After 4 years of negotiations between Europe and the United Kingdom, an agreement about Brexit has been reached that is very positive for the entire Made in Italy food and beverages sector. Italian food companies will be able to continue to export without duties or quotas in the UK, which is the top fourth commercial outlet market for a total value of 3.4 billion euros.

According to Italy’s farmers’ association Cia – Agricoltori Italiani, it will now be necessary to keep a close watch on the governance of the agreement to avoid future damage to free and fair competition.

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This long-awaited result has in fact avoided dramatic economic repercussions, but it is only a first step in the construction of a new system of relations between the European economy and Great Britain’s. According to Cia it will be necessary a strict surveillance on the so-called level playing field, in order to make sure that the UK can deviate from the European regulations without the risk of an unfair competition to the European companies.

The Brexit agreement is according to Cia a breath of fresh air for the Italian food industry. A no-deal Brexit would have probably caused tariff barriers and lower internal demand in the British market, penalizing many Italian F&B products in that important market. Starting with wine, which accounts for 24% of the total Italian F&B exports across the Channel (for a turnover of more than 830 million euros).

Exports of Italian processed fruit and vegetables (13%), fresh fruit and vegetables (6%), bakery products (11%), and dairy products (9%) are also very important. Protected Geographical Indication (PGI) products have a strong impact on this record, accounting for over 30% of Italy’s total exports to the UK. Thanks to the just reached Brexit trade agreement they will continue to be recognized and protected in the UK.

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