Nick Park on agriculture 'shouldering burden' of tax deal
However, there is a concern that agriculture is shouldering the burden to the benefit of other industries at a time when it is already under pressure. There is widespread worry in particular that the removal of UK tariffs on bioethanol coming into the country could spell disaster for UK production, with US suppliers able to produce and ship cheaper in bulk.
While there is currently little-to-no bioethanol production in Wales, it's a renewable energy source for the industry that is regularly cited as having huge commercial potential here, with the country having significant grassland potentially suitable for its production. There are projects underway looking at the viability of extracting and fermenting the sugars from grass to make bioethanol. Any farmers in the region who were exploring this as a potential option may need to keep a close eye on the impact across the rest of the UK.
Some good news is that though there has been a relaxing of tariffs on US beef into the UK (and vice versa), UK food standards on imports will remain, meaning no hormone-treated meat on our shelves. What this will mean for Welsh beef or the more than 600 beef and cattle farms in the Gwent region is unclear. However, with Wales seeing a stark rise in production over the last few years (producing 51,300 tonnes in 2023 alone), farmers are again having to hold their breath and see what happens.
Overall the only thing certain about this tariff deal is how uncertain it all is - with China already grumbling the deal could compel UK companies to exclude Chinese products from supply chains. Considering that in 2024 China was Wales' second largest import market, and the fastest growing, this could again cause a knock-on effect for our agriculture industry.
Add into the mix that this agreement is not an official trade deal - that can only be agreed and ratified by US Congress - so it could be discarded as quickly as it was arranged.
Nick Park is the director of Cwmbran-based accountants & tax advisors, Green & Co, and a member of the Country Landowners Association (CLA) National Taxation Committee.
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Iran could block the Strait of Hormuz, through which one fifth of global petroleum exports are shipped. This is a potent threat, which would cause oil prices to rise. But this would also almost certainly precipitate a full US entry into the war. Finally, of course, Tehran could accelerate efforts toward the testing of a nuclear weapon. All these potential courses of action bring with them the likelihood of increased global isolation, and increased US counter measures. These, in turn, would lead to deteriorating internal conditions in the country, which could hit at the regime's legitimacy and stability. Then again, acceptance of defeat, and surrender might have a similar effect. Supreme Leader Khamenei and his isolated regime have few good options at present. Whichever one they take, they are likely to be privately cursing the memory of their brother and comrade Yahya Sinwar, deceased former Hamas leader, whose decision to launch the massacres in October 2023 has led directly to Tehran's current predicament.
