What no-deal Brexit means for bloodstock: the TBA answers the big questions

This article was first published in August 2019

Since Boris Johnson entered 10 Downing Street on July 24 the prospect of no-deal Brexit appears to have grown more probable, with the new prime minister having travelled to Berlin on Wednesday to call for the Irish border backstop plan to be scrapped – a demand that was, according to EU insiders, unlikely to be acceded to.

While Johnson has vowed to do all he can to renegotiate the Brexit withdrawal agreement, he has also vowed that Britain will leave the EU on October 31 "do or die".

That date falls in the middle of the Tattersalls Autumn Horses in Training Sale in Newmarket and shortly before National Hunt, Flat foal and breeding-stock sales in Britain, Ireland and France, for which breeders, vendors and buyers will be expecting to transport horses freely between the three countries and further afield.

A no-deal Brexit could imperil the import and export of horses between Britain and EU countries, with the Tripartite Agreement that allowed ease of movement between Britain, Ireland and France no longer valid.

There are numerous other complications for the bloodstock industry such as issues around availability of staff and medicines.

We asked Claire Sheppard, chief executive of the Thoroughbred Breeders' Association, which chairs the cross-industry Brexit Steering Group, for the latest intelligence on where no-deal Brexit might leave bloodstock.

What might happen to horse transport after October 31? Are long queues at borders likely?

The situation is essentially the same as if the UK had left the EU without a deal in March or April this year. The UK government has said that there will be no additional animal health checks on thoroughbreds entering the UK in the event of no deal – a position which we fully support. The notification of any import will change from a EU to a UK system.

The EU has said that the Tripartite Agreement would no longer be valid if the UK leaves the EU with no deal, indicating that for UK horses entering the EU they would apply "regulation and tariffs at borders with the UK as a third country, including checks and controls for customs, sanitary and phytosanitary standards and verification of compliance with EU norms."

Defra [Department for environment, food and rural affairs] has put in place measures to address the EU animal health requirements when exporting into the EU from the UK, as a third country.

Animal health checks and controls are dependent on the EU renewing the third country listing for the UK’s animal health status and for its studbooks. The UK was designated in the highest health category ahead of a potential April no deal, and we're hopeful this designation would be made again in October, but this is likely to be granted only just ahead of October 31.

As well as these animal health requirements, customs, driver, transporter and vehicle authorisation checks will apply, and these probably have the greater potential to cause delays.

Might sales companies need to switch auctions between countries if there was travel chaos due to no-deal Brexit?

The potential issue is not with the actual sale, but how horses move to and from sales between EU and non-EU countries. Therefore, moving the location of a sale may not be a solution.

Geldings and other horses didn't appear in the temporary tariff regime published in March; does that still stand?

The UK’s position remains that, even if the UK leaves the EU with no deal, only the import of horses that are not pure-bred breeding animals and that are also from outside the EU may be subject to a third country duty of 11.5 per cent. The industry has not heard of any plans to change that position.

The EU can apply tariff rates of up to 11.5 per cent for horses, excepting purebred breeding animals.

Therefore, at present, there remains the potential for exports of geldings from the UK to the EU to be subject to tariffs.

We hear about the possibility of medicine shortages in the event of a no-deal Brexit. Could this also be the case for equine treatments?

The government regulator, the Veterinary Medicines Directorate, an agency of Defra, has done a huge amount to prepare for the UK leaving the EU.

The trade body for the UK animal medicines industry has stated: “Much work has been done by companies with the objective of ensuring fair and appropriate distribution of this inventory to avoid disruption.

"Supply is expected to cope with a normal ordering pattern with adequate forward planning and communication with suppliers. With this planning in place, we are confident that we have made every effort to ensure continuity of supply of veterinary medicines in the UK.”

What’s the latest position on British equine operations hiring staff from outside the UK?

At present, staff from outside the European Economic Area are required to have an appropriate visa – with stable staff applying to the Tier 2 (General) points-based system to work in the UK, and the BHA working with the UK Border Agency on endorsement requirements for trainers and jockeys.

There are no restrictions on workers from EEA countries at present under freedom of movement for workers under EU rules. Following Brexit, the UK government has said that a new immigration system will be introduced for EEA workers.

The British racing and breeding industry, through the Thoroughbred Industries Brexit Steering Group and with support from the Department for Digital, Culture, Media and Sport (DCMS), have been making representations to the Migration Advisory Committee process on the construct of the future immigration system.

We're calling for recognition of the skilled roles required in caring for and training racehorses and breeding stock, the important role that the industry plays in the British rural economy, and a system that does not compromise the status of EEA and non-EEA workers already based in the UK.

What's happening next?

The UK government is currently reviewing its detailed guidance in the event of a no-deal exit on October 31. This will be circulated in September, in time for those looking to transport horses to and from EU countries after the leave date to prepare.

The British racing and breeding industries have been in regular ongoing dialogue with government officials, and Defra in particular, throughout the last few months and will also be sending out guidance to all participants to ensure they're aware of the preparations they need to make in the event of a no-deal Brexit.

In the meantime, there is detailed information tailored for the racing and breeding industry on the BHA’s website at https://www.britishhorseracing.com/regulation/brexit/

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