ANALYSIS – WITH NEW GOVERNMENT, WHAT NOW FOR UK SEAFOOD SECTOR?

Analysis – with new Government, what now for UK seafood sector?

The landslide majority election of a new Labour UK Government could put fishing back to the centre-stage of politics.

In a scenario that many in the fishing industry might regard as a double-edged sword, new Prime Minister Sir Keir Starmer has pledged to forge a closer relationship with the EU, including easing complicated trade regulations, particularly revolving around food exports and their associated veterinary restrictions.

Labour intends to use a review next year of the post-Brexit trade deal to negotiate a new food standards and veterinary agreement with the EU to reduce checks on British food being exported to the continent and vice versa. This would involve Britain agreeing to follow existing EU rules on food safety.

Many in the industry – especially seafood processors and shellfish farmers – would hugely welcome an environment where burdensome red tape is mitigated. The impact of such restrictions has already hit the UK seafood export market. According to Seafish, in 2022, 74% of the UK’s exported seafood volume was to the EU. This is down from 82% in 2020, before the UK left the EU. The EU’s market share of UK’s seafood exports value has declined from 75% in 2020 to 70% in 2022. Most of the seafood exported from the UK to the EU goes to France, Spain and the Republic of Ireland, and focuses on salmon, langoustines, and scallops. Over 25% of the value of exports comes from salmon going to France.

While some UK seafood producers have managed to forge new markets outside the EU, this can be challenging when exporting fresh product. Furthermore, it makes sense to focus on our nearest market, which is huge with the EU comprising a population of around 448 million people.

However, agreeing an improved trading relationship with the EU would come at a price, and would involve some kind of pro quid quo, which might include a demand from the EU for greater fishing access to UK waters – something the UK catching sector would balk at.

The new Government has also promised to strengthen marine environmental protection. In a debate on nature conservation just prior to the General Election, Labour MP and the then Shadow Environment Minister Toby Perkins announced that a Labour Government would ban bottom fishing in all national marine protected areas.

This would be “one of our first measures” he said, if his party came to power. The Liberal Democrats and the Green Party have also pledged to ban bottom trawling in marine protected areas.

The Labour Government also intends to ratify the adoption of the Global Ocean Treaty presented by the United Nations in 2023.

This agreement aims to protect 30% of the oceans by 2030, particularly on the high seas – outside national jurisdictions – by implementing protective measures, including the creation of marine protected areas (MPAs).

There could also be some ramifications with the new relationship between the Westminster Government and the devolved nations, especially Scotland. Sir Keir Starmer has already met with Scottish First Minister John Swinney where they have pledged to work more closely together. The previous relationship between the SNP Government and the Conservative Government was frosty at best, and recently, Jimmy Buchan, CEO of the Scottish Seafood Association, told Fish Focus that this was to the detriment of the seafood sector.

He said:  “We do wish that there was more constructive engagement between the governments of the UK and Scotland to work together for the common good and ensure an environment that enables fish processing to thrive.”

Immigration is likely to be another key issue, with Scottish seafood processors keen for a flexible visa immigration policy to ensure their sector – as well as the wider food industry – can secure easily accessible labour to ensure growth. However, in a recent interview, Scottish Labour leader, Anas Sarwar refused to give any such commitment for a Scottish-specific visa system.

The only thing that can be said with certainty about the new Labour Government and its relationship with the seafood sector is that these are going to be interesting times ahead.