How Falkland Islands squid could be a bargaining chip in Brexit reset negotiations

To its critics, Brexit cut the UK off from the EU in a way that damaged the economy.

But some parts of British soil have been more severed than others, with overseas territories left out of Boris Johnson's Brexit trade deal, despite UK demands, and facing tariffs. harmful customs duties on their exports to the EU.

It's a situation that is biting in the Falkland Islands, which has lobbied Sir Keir Starmer for EU tariffs on vital fish exports to be reduced or canceled as part of his reset plan of the EU, designed to make Brexit work.

An island government source believes senior ministers are receptive to requests to resort to reset negotiations next year or parallel negotiations to replace the existing UK-EU fisheries deal, which expires in June 2026, in order to obtain the lifting of customs duties. A government spokesperson said I The UK understands the importance of tariff-free trade with the EU for the people of the Falkland Islands.

Asked last month about the issue, which means tariffs of 6 to 18 percent on Falklands fish going to the EU, the Prime Minister said the welfare of the islands was personal to him after his uncle was bombed while serving in the 1982 war. defending the territory's British status against Argentine invasion.

Fish, alongside youth mobility, is also the area where the EU is pushing for concessions from the UK in return for meeting Starmer's demands for a security pact and deal veterinary to stimulate cross-border food trade.

This means Falkland Islanders could find themselves on the table as bargaining chips, as the EU demands continued access to UK waters and the lifting of the UK ban on sandeel fishing, while Starmer makes pressure for closer defense and trade ties.

These tariffs could soon appeal to consumers on both sides of the Brexit continental divide, as around half of the squid sold to locals, as well as Britons and other holidaymakers in Spain, comes from the Falklands, according to the island's government.

While the islands' industry is currently absorbing the tariffs, to the tune of €15 million a year, they could eventually be passed on in the form of higher prices for the ubiquitous breaded squid rings sold in Spanish restaurants. seaside.

Teslyn Barkman, a member of the Falklands Legislative Assembly, said she hoped a deal could be reached, adding: It seems to be a win-win because the European market wants our product.

Failure to address tariffs would result in a substantial loss to the Falklands, particularly in terms of tax revenue, with around 90 per cent of the island's fishery products destined for the EU.

The Falklands' fishing relations with the EU also affect around 53 percent of the islands' economy, according to Barkman, because of the way they affect services around the industry.

We are a community that relies very heavily on this sector, so even a small drop in income is quite significant.

Barkman also called for direct contact with the British mission in Brussels and dedicated support from the Department of Business and Trade.

She continued: It's hard to imagine being part of the UK's current trade arrangements, as there would be a lot of regulations and technical requirements that would be quite difficult for an administration of our size to meet, especially when it is so specific in this area. aspect of commerce.

So to be able to get to the point where the UK is asking for a similar relationship to the one we had before, where it was a side deal allowing smaller countries to be able to access the EU market at a way that benefits their economic prosperity and development, and in a way that has in turn reduced the possibility of a widening gap between the developed EU powers and the small islands.

A government spokesperson said: “The UK understands the importance of tariff-free trade with the EU for the people of the Falkland Islands and ministers and officials will continue to work closely with the Islands Government Falklands.

We will protect the interests of our fishermen and respect our international commitments to protect the marine environment.

It comes as the UK and EU prepare for what are likely to be highly contentious negotiations on fisheries, with the current agreement on access and quotas expiring in June 2026.

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The EU has already demanded that negotiations begin now, following a series of controversies, including French protests against Britain's ban on bottom trawling in its territorial waters, and Brussels' legal action against the British decision to ban the capture of sandeels, a move designed to protect puffin populations but hated by Denmark and Sweden.

British fishermen, who Labor said in July's election had been sold out as part of the original Brexit deal, are also pushing for British boats to stock up on more British stocks.

Mike Cohen, chief executive of the National Federation of Fishermen's Organizations, said I the industry wants the government to negotiate vigorously.

Some believe the UK could even try to keep EU boats out of the 0-12 mile zone off Britain's coast, where small British boats face competition from huge European trawlers.

Cohen said he wants to see changes in access [for the EU] has [UK] In the territorial waters where our fleet is most vulnerable, where the fisheries are most delicate, our ability to manage those fisheries is difficult if we cannot control who fishes in them.

He added: We weren't happy with the access agreements, we weren't happy with the quota shares, we don't think they fairly represent where the fishery resources are. 70 percent of the sole quota in British waters is held by Belgium, around 80 percent. With 100% of the cod in the English Channel being held by France, we do not believe this is a fair distribution.