UK not starting with ‘blank piece of paper’ post-Brexit, former Trade Minister argues

The UK is not starting with a blank piece of paper when it comes to negotiating trade agreements outside the EU, the former Minister for Trade and Minister for Europe told the wine and spirit industry – and it is not in Europe’s interests to ‘punish” the UK.

Former Minister for Trade and Minister for Europe Lord Maude speaking at this year’s WSTA conference

Lord Maude, who served on the front bench until February this year, painted a positive picture of the post-Brexit landscape for the drinks industry at the WSTA’s annual conference this week, arguing that there was scope for the industry to form an active part in the post-Brexit landscape through the wider global drinks industry.

Read more: 

WSTA explores Australia talks as trade minister talks of ‘cheap Aussie wine” 

WSTA sets out post-Brexit landscape

Dan Jago named as new WSTA chairman

Lord Maude, who gave the key note speech, said it was likely the UK would made a ‘bespoke” arrangement with the EU that fitted its size and scope, rather than follow any existing model – and argued that the industry could and should get involved.

He dismissed the “threatening” voices in Brussels that had emerged in the aftermath of the vote that appeared to want to make life difficult for the UK following Brexit as a deterrent to other countries, pointing out that these came “from Brussels, not from the national capitals and emphatically not from the trade community”.

“Anything that does harm  to the UK economy as a means of a deterrent has an effect on the EU economy – and no economy in the EUro-zone is robust enough to withstand that. So I expect the calm voices of reason to prevail, although that does not premium the UK will get everything it wants. But the crucial thing for your sector is to make sure your voice is heard,” he said.

He pointed out that as it was likely to take time for the new Whitehall institutes and apparatus to “settle down” (“it’s chaos”, he added) – but the WSTA was well-placed to navigate it, and the industry could still work towards it in the meantime.

“Don’t just think about the UK government – talk to your counterparts, French wine producers too, they don’t want barriers raised to the exports of their products anymore than UK gin producers want barriers to the exports of their products within the EU,” he said. “The way to get maximum leverage is to make your own alliances across the EU, with influential producers, businesses and trade bodies not only in their interaction with the commission, but with national governments.”

This sentiment was echoed by WSTA chief executive Miles Beale who say the industry “can and must” get involved to help design the post-Brexit landscape.

Maude was upbeat about the potential for international trade, pointing out the goodwill towards the UK around the world, and the caché attached to UK-made producer, especially high-end food and drink. There was also, he pointed out enthusiasm for free trade agreements from both government and the public, in contrast to the protectionism being “disgracefully stoked” elsewhere, in the US, Germany and Austria.

“We can concentrate on what is important to us, and us alone – can expect India’s import tariffs on Scotch to jump up the list of priorities,” he pointed out, adding that it was better to get “a good deal now, than wait endlessly for a perfect one later”.

He also pointed out that the UK was not starting with a blank piece of paper with any of the potential free trade deals, and its historic high level of engagement was likely to stand it in good stead and help speed up the process.

“You might not believe it, but we are very good Europeans – we play a far more intense role which is one of the biggest paradoxes of the whole thing. Part of the reason we were difficult was because we knew that anything we agreed, we would implement,” he told delegates.

“There will be twists, turns and bumps along the way, but I have no doubt there are opportunities as well, and your companies are incredibly well placed to exploit them,” he concluded.