According to MLA Teslyn Barkman, the fishing industry between 2007 and 2015 accounted for 40.1% of the Falklands GDP, and in 2016 two-thirds of corporation tax receipts came from fishing.
“We sell our fish to Europe,” she said. “The EU was the destination for around 94% of Falklands’ fisheries produce in 2017. Loligo squid exports caught by Falkland-flagged vessels had a value of around £240 million. These sales depend on tariff and quota-free access to the EU market. Brexit risks the Falklands, as a UK Overseas Territory, losing this, with a significant negative impact on our fishing industry,” she said and commented that the Falklands have to follow the UK Foreign Policy lead, with the possibility of having to fall back on WTO rules post-Brexit.
“Not only would paperwork and delays increase, but import tariffs would also rise from zero to between 6% and 18% for the kind of fish products we export. Some have suggested this problem could be solved by looking to other markets, but this is difficult. Although demand is high, competition is strong and there are political and tariff barriers to be negotiated.”
Not only the Falklands will be affected if the current level of access to EU markets isn’t achieved by the UK government in Brexit negotiations. As most of the Falklands’ produce enters the EU through Vigo in Spain, around 6000 Spanish seafaring and supply chain jobs could be at risk. Spanish companies are worried their investment and efforts to co-operate with the Falklands could be lost,’ she said.
These are the clear reasons why the government of the Falkland Island as well as companies and industry figures in both the Falklands and Spain are calling for the UK and EU to agree to maintain the status quo, ensuring they can continue to access resources and be exempt from customs tariffs.
“But if the UK government persists with its current intention to leave the customs union and single market, detrimental effects seem inevitable,” Teslyn Barkman said.
“Facing such a huge loss, especially with no deal, the Falklands could end up requiring high levels of government support for the medium term, which is another potential cost of Brexit for the UK government to consider.”
