Annual custom duties for Spanish produce may reach €198 million

The negotiations between the European Commission and the United Kingdom to agree on the future trade relationship after the Brexit are in the last straight line.

Yesterday, the European Commission reported that the main European Union negotiator, Michel Barnier, will remain in London until Wednesday after the negotiations with his British counterpart, David Frost, were extended by three days.

If no agreement is reached before the end of the transitional period, on 31 December, European exports will be subject to import duties as determined by the World Trade Organisation.

For the Spanish fruit and vegetable sector, the annual amount of customs duties would amount to around €198 million, according to Fepex.

The United Kingdom is the third largest market for Spanish fruit and vegetables, accounting for an export of €1,160 million in the first half of 2020, 9% more than in the same period last year. All over 2019, exports amounted to 1.5 million tonnes, 5% more than in 2018, for a value of € 1 779 million (+1%), according to data from the Spanish Department of Customs and special taxes.

Source: Talk Finance