Brexit – Implications for Horticulture
The vote to remove the United Kingdom from the European Union (EU) is a significant development for anyone trading with the UK and EU.
Hort trade with the UK is worth about $100 million but with the EU is worth about $500 million (all in NZ dollars).
The key point is that nothing will happen fast. This is because the Brexit poll was not binding. The UK Parliament will now need to presumably vote on UK leaving the EU and then negotiations to exit the EU will need to be taken. There is a two year negotiation period but in all likelihood it will be a number of years before there is significant change. It may take longer than 5 years to get underway.
So trade today with the UK and EU is as it was yesterday. It will not change for at least 2 years.
What we need to do is carefully plan how NZ will enhance its trading position with the UK and the EU. We need to make opportunities and be ready to take advantage of them.
HortNZ is working with government on this and being kept informed about possible scenarios as they play out. We will keep you up to date in our blog, newsletter and magazines.
-Mike Chapman, CEO