'Hard' Brexit will give Government 'fantastic opportunity' to LOWER food prices
THE GOVERNMENT has a "fantastic opportunity" to lower the cost of British families' weekly shop if it opts for a clean break from the European Union, a leading think tank has claimed.
By
GREG HEFFER, POLITICAL REPORTER
PUBLISHED: 09:00, Wed, Dec 28, 2016
The PM has been told she has a 'fantastic opportunity' to cut the price of everyday foods
By quitting the bloc's Customs Union, a so-called 'hard Brexit', ministers could send the price of a range of everyday foods tumbling, according to the Legatum Institute's Special Trade Commission.
In a soon-to-be-released report, the think tank's trade experts will make a series of recommendations to Theresa May's Government for a successful departure from the EU.
And near the top of the list will be leaving the EU's restrictive Common Agricultural Policy (CAP) and Common Fisheries Policy (CFP) in order to eliminate quotas and tariffs on all products British farmers cannot grow themselves.
This could lead to significant falls in the price of goods such as tuna, bananas, avocados, olive oil, corn, coffee and vanilla.
Speaking at a briefing earlier this month, Legatum Institute research associate Molly Kiniry said: "This is pretty much a no-brainer, you can’t grow bananas in Britain so why would we pay seven or eight per cent [tariff] to import them.
"And certainly why would we have any sort of quota on the number of those products that could be imported a year. "We don’t anticipate there’s going to be much pushback from the British farming community on that. "And that should deliver fairly substantial consumer welfare benefits, especially on those foods which are very commonly eaten."She added: "We even pay a 4.5 per cent tariff on communion wafers, which is almost hard to believe."There’s certainly an opportunity for the Government to make policy changes to lower food prices.
Legatum Institute research associate Molly Kiniry
Leaving the Customs Union would allow Britain to set its own tariffs, which Ms Kiniry told Express.co.uk would offer the Government "a fantastic opportunity to make some changes that would probably lower the price of food for the average Briton while helping our farming community at the same time".
She noted how the EU had 12 different tariff lines for tuna, depending on the species, whether it is fresh or frozen and even if it is sold with a head on or off.
Ms Kiniry warned, by contrast, other factors could adversely impact food prices, such as regulatory schemes and inflation caused by the fall in the value of the pound since the Brexit vote.
She said: "If the pound stays where it is right now and the Government chooses the same policies then food prices will go up."But she added: “There’s certainly an opportunity for the Government to make policy changes to lower food prices.