UK Retailers Warn Of Food Shortages In Event Of No-Deal Brexit

UK retail giants have warned lawmakers that a no-deal Brexit will cause major disruptions in the food supply chain, leaving shelves empty

MOSCOW (UrduPoint News / Sputnik - 28th January, 2019) UK retail giants have warned lawmakers that a no-deal Brexit will cause major disruptions in the food supply chain, leaving shelves empty.

The letter was unveiled Monday by the British Retail Consortium and co-signed by senior executives from Asda, Marks & Spencer, KFC, Pret A Manger, Lidl, and McDonald's, among others.

"While we have been working closely with our suppliers on contingency plans it is not possible to mitigate all the risks to our supply chains and we fear significant disruption in the short term as a result if there is no Brexit deal," the letter reads.

The retailers estimated that a third of UK's food came from the European Union. The "just-in-time" supply chain of perishables will be hit the most when the country leaves in March, they said, as UK products will still be out of season.

"Even if the UK government does not undertake checks on products at the border, there will still be major disruption at Calais as the French government has said it will enforce sanitary and customs checks on exports from the EU, which will lead to long delays," the letter stressed.

The UK government said earlier that cross-Channel freight would drop 87 percent if border checks were brought back. For consumers, this means lesser availability and shorter shelf life of food in the stores.

Another concern, retailers said, is import tariffs which will go up in the event of a no-deal exit, driving up food prices. Only 10 percent of imports are currently subject to duties under the World Trade Organization rules.

"We are therefore asking you to work with your colleagues in Parliament urgently to find a solution that avoids the shock of a no deal Brexit on 29 March and removes these risks for UK consumers," the businesses concluded.

The letter comes a day before the UK parliament begins debating the terms of withdrawal that Prime Minister Theresa May modified after her hard-won Brexit plan failed to clear the House of Commons earlier this month.