Meatco will not relocate due to Brexit
Meatco says it will not be relocating its operations from England to Rotterdam in the Netherlands due to the imminent withdrawal of the United Kingdom from the European Union (EU), known as Brexit.
The UK's House of Commons voted overwhelmingly in favour of Prime Minister Boris Johnson's Brexit deal last week, finally paving the way for the UK to leave the EU later this month after more than four decades of membership.
Initially, at a press conference held last Thursday, Meatco's acting board chairperson Ronald Kubas confirmed that the company will be relocating its operations to Rotterdam to maintain access to the EU.
He added that Meatco will still continue discussions with Britain on the export of beef.
However, a few hours later, Meatco issued a statement saying there was no need for it to relocate.
“At this stage, from Meatco's side, there is no need to relocate our operations. We are were only contemplating moving to Rotterdam if there was going to be a 'hard Brexit',” Meatco said.
A hard Brexit involves a deal whereby the UK leaves not only the EU but the single market and the customs union.
Following the UK's 2016 decision to leave the EU, the Southern African Customs Union (SACU), Mozambique and UK ministers agreed to rollover the Economic Partnership Agreement (EPA) between the EU and the SADC EPA (EU-SADC EPA) states into a new agreement.
The rollover was with the understanding that adjustments may be needed to address specific matters.
On 8 September 2019, senior officials from the SACU member states, consisting of Botswana, Eswatini, Lesotho, Namibia and South Africa, as well as Mozambique and the UK, reached an agreement in principle and initialled the text of the new deal in Gaborone, Botswana.
This initialled agreement will now be presented for approval in each country to facilitate the signature and subsequent ratification, according to the domestic processes of each country.
According to Meatco, the agreement will enter into force upon the completion of these aforementioned processes. However, pending ratification, the parties agreed to develop a non-binding memorandum of understanding (MoU) which would be used as the basis to provisionally apply the effects of the EU-SADC EPA until domestic ratification processes in each country have been completed.
Meatco said the conclusion of the SACU, Mozambique and UK EPA marks a decisive step towards ensuring continuity of trade and avoiding any potential trade disruptions when the UK eventually leaves the EU.
“This agreement will therefore inject confidence and predictability to maintain current trade and potentially unlock the investments in the development of regional value chains.”
According to Meatco, the parties remain committed to resolving the outstanding issues identified in the built-in agenda and the transitional arrangement within agreed timelines to ensure maximum commercially meaningful benefits from the agreement.
Exports to the UK make up about 8% of Meatco's total beef exports.
ELLANIE SMIT
The UK's House of Commons voted overwhelmingly in favour of Prime Minister Boris Johnson's Brexit deal last week, finally paving the way for the UK to leave the EU later this month after more than four decades of membership.
Initially, at a press conference held last Thursday, Meatco's acting board chairperson Ronald Kubas confirmed that the company will be relocating its operations to Rotterdam to maintain access to the EU.
He added that Meatco will still continue discussions with Britain on the export of beef.
However, a few hours later, Meatco issued a statement saying there was no need for it to relocate.
“At this stage, from Meatco's side, there is no need to relocate our operations. We are were only contemplating moving to Rotterdam if there was going to be a 'hard Brexit',” Meatco said.
A hard Brexit involves a deal whereby the UK leaves not only the EU but the single market and the customs union.
Following the UK's 2016 decision to leave the EU, the Southern African Customs Union (SACU), Mozambique and UK ministers agreed to rollover the Economic Partnership Agreement (EPA) between the EU and the SADC EPA (EU-SADC EPA) states into a new agreement.
The rollover was with the understanding that adjustments may be needed to address specific matters.
On 8 September 2019, senior officials from the SACU member states, consisting of Botswana, Eswatini, Lesotho, Namibia and South Africa, as well as Mozambique and the UK, reached an agreement in principle and initialled the text of the new deal in Gaborone, Botswana.
This initialled agreement will now be presented for approval in each country to facilitate the signature and subsequent ratification, according to the domestic processes of each country.
According to Meatco, the agreement will enter into force upon the completion of these aforementioned processes. However, pending ratification, the parties agreed to develop a non-binding memorandum of understanding (MoU) which would be used as the basis to provisionally apply the effects of the EU-SADC EPA until domestic ratification processes in each country have been completed.
Meatco said the conclusion of the SACU, Mozambique and UK EPA marks a decisive step towards ensuring continuity of trade and avoiding any potential trade disruptions when the UK eventually leaves the EU.
“This agreement will therefore inject confidence and predictability to maintain current trade and potentially unlock the investments in the development of regional value chains.”
According to Meatco, the parties remain committed to resolving the outstanding issues identified in the built-in agenda and the transitional arrangement within agreed timelines to ensure maximum commercially meaningful benefits from the agreement.
Exports to the UK make up about 8% of Meatco's total beef exports.
ELLANIE SMIT
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