LONDON, UNITED KINGDOM – A delegation of more than a dozen USA Rice members and staff representing some seven companies traveled to the United Kingdom (UK) last week to meet with rice importers, UK trade officials, participate in the UK Rice Symposium and visit rice wholesalers who are currently stocking identified U.S. rice brands on their shelves.
The trip coincided with the Trump Administration's announcement of its intention to begin negotiations with both the UK and the European Union (EU) on Free Trade Agreements (FTA).
Much of the discussions centered around the UK trade regime after leaving the EU on March 29, 2019 and the U.S. rice industry's long-term goal of duty free access to the UK - the largest market for U.S. rice in Europe - as well as free rice trade in a US – EU deal. The UK government is currently in the midst of negotiating the conditions of its departure from the EU as well as the degree of future cooperation. There is much uncertainty for the business sector, including rice importers, millers, and end users about the implications for the rice industry of the UK withdrawal and the resulting duty structure to follow.
At present, U.S. rice enters the EU under a complex tariff rate quota (TRQ) and tariff scheme that adds cost for importers to buy U.S. rice. Added on top of the already challenging trade arrangement are the 25 percent retaliatory tariffs imposed in June of this year on U.S. milled rice.
The U.S. delegation held a meeting with UK officials from DEFRA (Department for Environment, Food and Rural Affairs) to discuss the implications of the different Brexit scenarios for U.S. rice exports and communicate interest in an FTA with the UK. The biannual UK Rice Symposium is the most important gathering for the UK rice industry, where USA Rice President and CEO Betsy Ward and VP International Sarah Moran presented on the U.S. rice crop, as well as consumer trends in the U.S.
The trip ended with a visit to the new U.S. Embassy and a meeting with FAS Agriculture Minister Counselor Stan Phillips, Ag Specialist Steve Knight, and Ag Marketing Specialist Julie Vasquez-Nicholson followed by market visits to Afro-Caribbean and Chinese wholesalers who stock and promote U.S. grown rice.
“As Brexit is nearing and there are still so many questions around what and how it will happen, it was opportune timing for us to travel to the UK and show our appreciation to the UK rice industry, as well as to meet with local trade officials to communicate our strong interest in an FTA, and zero duty access for U.S. rice. We hope the U.S. administration will work and support U.S. rice in order to get this trade barrier removed.” said Betsy Ward, President and CEO of USA Rice. “I am very pleased that we had so many of our members joining us on this trip.”