The position of the Falklands on the impact of Brexit, never came to be raised with the EU
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The appeal of the islands’ fishing industry against the imposition of tariffs on their seafood and other products has not been heard at all.
According to FIFCA, more than 90% of the islands’ fish exports go to the EU and something like 60% of public revenue comes from the fishing industry
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Tough challenges await the Falkland Islands as the Brexit countdown inexorably looms.
While the government of the Islands, FIG, has made public statements that it has indeed worked hard to ensure that the impact of Brexit, (including the fishing industry that seems doomed to exhausting tariffs), has been fully understood by The UK government, the harsh reality is that no submission has been made on behalf of the Falklands to the European Union.
As reported in this week’s edition of Penguin News The fact was confirmed by veteran MLA legislator-elect Roger Edwards who, when asked about the matter, explained that when the United Kingdom tried to speak on behalf of its Overseas Territories, it was informed by the counterpart that this would not be possible from the moment that the Union Europe would not speak on behalf of the Overseas Territories of other nations of Europe.
In other words, the Falklands fishing industry’s appeal against the imposition of tariffs on its seafood, and other sources, has not been heard at all.
The situation is very serious, as indicated in a statement from the Falklands Fisheries Company Association, FIFCA earlier in the week: ?? in excess of 90% of our seafood is exported to the EU market, which which represents something like more than 40% of the GDP of the Falklands and up to 60% of public revenue. And there are no alternative comparable markets.
?? Unless there is a significant change in the UK government’s attitude to our UK market access position in the Brexit negotiations currently on track, our seafood industry will face tariffs ranging from 6% and 18% in a few weeks ??.
Stuart Wallace of Fortuna Fishing Company Lts., Put the situation in perspective for the Penguin News. ?? six percent on sales may not seem like a lot but taking a period of ten years it can be something like a third of average of the profits, and in a few years that level of tariffs can lead us to a loss situation . As for our finfish sector, are they also going to be hit by the highest tariffs, 18% ?? ´
?? In raw numbers, the impact would be a blow of some ten million pounds to the sector, that is to say, 7.5 million pounds of the post-cost cost to the companies, in addition to the reduction in taxes to the corporations of the order of about 2.5 million pounds, so it is easy to see that in the course of time the tariffs will compromise the management of the sector significantly.
Wallace added, ?? to better put it in context the total budget of the Department of Health and Social Security is about 12 million pounds, therefore the loss to the economy of the Islands each year working on those assumptions is of that amount ?? .
A statement from the government of the Islands, FIG, last Wednesday recognized that from a commercial perspective, the Falkland Islands would be “the Overseas Territories the most negatively impacted, as a result of withdrawing from the European Union”. (PenguinNews)
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