WSTA: ‘no deal’ on Brexit is ‘unacceptable’

The WSTA has described the prospect of failed Brexit negotiations as “totally unacceptable”, with chief executive Miles Beale calling for a “full negotiated divorce settlement” to avoid a cliff edge ’no deal’ Brexit.

In the statement issue on the first day of Brexit negotiations, Beale said it was essential that the UK secure transitional measures that would allowing sufficient time for “necessary systems to be introduced and properly tested” and avoid the UK falling off a cliff without a deal.

“Ideally a transition period would allow the UK to agree a Free Trade Agreement (FTA) with the EU and then to make good progress on other bilateral FTAs with our major trading partners.  Such a transition would give businesses time to prepare fully for a post-EU trading environment,” he said.

Speaking to db following the election, Beale said that there was less of a threat of this happening following the general election, which would force the weakened Tory government to take a broader stance and consult more widely.

And while the government may have changed, the position of the WSTA has not, he said.

“The change of government does not make one iota of difference to our point of view, but what’s changed is that Theresa May’s new government cannot be as ideologically-driven as before. I’m not sure we were ever very clear what they were asking for in negotiations, but now they will have to ensure wider constituencies in the UK and support.”

The potential rumours that not all of the cabinet were in agreement over the stance going forward meant that there would be “a bit less talk of ‘no deal is better than a bad deal”, Beale said.

“What we are pushing is a sensibly negotiated deal with a transitional period and I suspect they will stop talking about ‘no deal’ as they need to,” he said.

Beale noted that there has been considerable behind the scenes progress since last September, when former Europe Minister Francis Maude told the WSTA conference that Whitehall was “in chaos” over Brexit, and the government departments had begun to “click into gear” – even though the recent elections had potentially thrown the position of the new government into disarray.

Beale had previously told db that one of the biggest threats to an economically rational outcome was “politics” and “the need to give the UK a bloody nose on exiting the club”.

The UK is the world’s second largest importer of wine by both volume and value, as well as the largest export of spirits in the world, the WSTA, supporting around 573,000 jobs, both directly and indirectly. As a result, Brexit was “the most important issue” for UK wine businesses and spirits business, for the UK remains central to world wine trading post-Brexit, with spirits companies dependent on secure trade flows to continue to invest and grow.

For an exclusive interview with Miles Beale on Brexit post-election, please see the July issue the drinks business.