Article 50 could benefit agricultural exporters outside EU
But whatever the outcome of the negotiations, an increase in prices for some goods, such as fresh vegetables and olive oil, is more or less inevitable the bank said.
Still, the official launch of negotiations to leave the EU did little to disrupt UK markets on Wednesday, with the pound barely wobbling. Now that the article has been initiated, attention will focus on the exact details of future economic and trade relations between the UK and the EU, whether these are an interim agreement, or a permenant trade deal.
Price increases for some goods are inevitable
Rabobank warns that whatever deal is struck with the EU, prices for many agricultural products will increase.
"This is because once the UK is outside the free trade area, it will be forced to impose extra border controls, making importing from the EU more expensive," Rabobank said.
"Olive oil, flowers and fresh fruit, such as some types of tomatoes, peppers and pears are among the products the UK cannot produce itself and could only source from the EU, even after Brexit," Rabobank said, suggesting that prices for these products could rise by some 8%.
source: agrimoney.com
