IN THE WAKE of Brexit and a possible exit at the end of the month, there is concern amongst fishermen that Brexit could deal a severe blow to their industry, specifically the squid trade.
The economy of Britain’s Falkland Islands is heavily dependent on squid exports, specifically to Galicia in Spain where almost all of the molluscs are exported.
The Falkland to Vigo (Spain) squid trade supports 10,000 jobs in Spain and the UK overseas territory, tallying £200 million
In fact, 94 per cent of the catch, mostly squid, is exported from the contested South Atlantic archipelago known to Argentina as the Malvinas and occupied by Britain since 1833, is sent to the port of Vigo in north-western Spain.
There the squid are processed or shipped directly to other European nations. About a third of the squid eaten in continental Europe comes from the Falklands, according to the archipelago’s government.
As Euro Weekly News understands, this trade is profitable because no customs tariffs are placed on the squid since both Britain and Spain belong to the European Union, but that may end when Britain leaves the bloc.
With a possible tax increase by the World Trade Organization (WTO) custom tariff ranging between six to 18 per cent.