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<p>We remain focused on ensuring our smooth and orderly withdrawal from the EU with
a deal as soon as possible. However, as a responsible Government we have been preparing
to minimise any disruption in the event of a no deal.</p><p> </p><p>The short term
impacts of no deal are likely to be significant for some sectors. Of particular concern
is the sheep sector, as over 30% of UK production is exported, approximately 95% of
which is to the EU.</p><p> </p><p>In the event of no deal, we expect exports to the
EU to fall as the result of tariff and non-tariff barriers to trade. This will increase
the supply of lamb on the domestic market, which may in turn depress the domestic
price for lamb. With lamb consumption on a long term downward trend we would expect
this to lead to an increase in domestic consumption.</p><p> </p><p>Lower domestic
prices will also make UK lamb more attractive to markets outside the EU. Developing
market access and increasing UK exports remains a high priority with collaboration
across Government and industry to identify priority markets. UK lamb exports to non-EU
countries had a value of £15.2 million in 2018.</p><p> </p><p>In January 2019, Defra
successfully opened the market for lamb exports to Japan following its two decade
long ban on imports from the UK. The market is estimated to be worth approximately
£52 million over the first five years of access. The Japanese market has a growing
demand for high quality lamb and Defra’s Food is GREAT campaign has already built
lamb promotion into its activity there, showcasing UK lamb and beef to Japanese consumers,
trade and media in April. The campaign will continue to promote lamb in Japan during
September and October, capitalising on the cultural hook of the Rugby World Cup.</p><p>
</p><p>In December 2018 Defra opened the market for lamb exports to India. The new
agreement, which covers a range of sheep meat cuts, is estimated by industry to be
worth £6 million in the next five years.</p>
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