Brexit Update: A Quarter Of Food Businesses Could Face Extinction
The Food and Drink Federation has warned of potential extinction for a quarter of food business if a "no deal" Brexit happens. The warning came in the midst of a deadlock between the British parliament and the European Commission.
According to Mirror, Chief Executive of the Food and Drink Federation, Ian Wright told BBC Radio 4's Today program: "The simple fact is that this is the biggest threat that our members and businesses have faced since 1939."
The British parliament has yet to reach a deal with the European Commission on how the U.K. will operate following its exit from the EU on March 29. 45 days before Brexit, various industries are expressing fears about the future of business in Britain.
Wright noted that "A no deal Brexit would lead to considerable concerns for one in 10 of our business," adding that one in four food exporters could experience disruptions at ports. If this happens, he predicted that food firms "could go out of business within six weeks."
For Wright, the potential scenario of food businesses shutting down before Brexit is a serious threat that some people are taking for granted. He pointed out that whether or not the government prepares for extreme situations if a deal doesn't get settled soon, the food industry will still be heavily impacted.
Prime Minister Theresa May is expected to come up with a deal for the MPs and the Commission to review. Her now-infamous deal that she submitted earlier in January was rejected by a huge margin and became the most historical loss in the history of parliaments.
If May doesn't provide a new or tweaked Brexit deal within the next two weeks or so, analysts predict that unrelenting Labour MPs may be forced to choose between a no deal Brexit and May's previous proposal.
Numerous financial and economic experts have stated that a no deal Brexit will be disastrous not just for the United Kingdom but also for partner countries that engage in trade with the European state.
Meanwhile, other industries in the U.K. have also started speaking up about the potential consequences if Britain exits the European Union without an agreement. According to The Guardian, employees in some companies in Eastern Europe are worried about the severity of a no deal Brexit.
Jaroslaw Granat, who works Future Processing said that while only a few people believe that Britain will depart from the EU without an agreement, a turn of events for the worst "could be chaos."