Current Morocco and UK Customs Duties Are Limiting Tomato and Cucumber Trade

Fresh Tomato

Published May 19, 2023

Morocco grasped the chance to become a leading exporter of fresh fruit and vegetables, particularly fresh tomatoes and cucumbers, to the UK amid new post-Brexit trade regulations. It is no longer necessary for the UK to maintain this advantage in favor of European producers at the price of British taxation on Moroccan products, especially when only Moroccan supply is available on the market and does not compete with European, let alone British, output. Tridge closely monitors developments in the fresh tomato trade, and despite the recent analysis New Quotas on Moroccan Tomato Exports to Worsen European Shortage, there is room for improvement in the UK's tariff implementation regarding fresh vegetables from Morocco, which will undoubtedly boost trade between the two countries.

In a post-Brexit era, the UK is establishing new trading regulations to boost trade and ensure a stable supply of commodities. After the UK Government recently issued its Target Operating Model, goods imported into the UK from the EU will be subject to changes beginning October. Phytosanitary certifications will be required for products imported from the EU (fruits, vegetables, seeds, and cereals). Morocco seized the opportunity in the fresh fruit and vegetable trade, especially regarding fresh tomatoes and cucumbers, and took charge of the UK import of fresh tomatoes. Although Morocco's vegetable exports skyrocketed, there are still some obstacles to further growth, like customs tariffs. During the post-Brexit negotiations between Morocco and the UK, an agreement was reached to maintain the same customs rules with the EU before Brexit. On the other hand, keeping the same rates and quotas ignored market realities and excluded considerable volumes.

Current Tariff Rules of Tomatoes Exported From MoroccoSource: Tridge

Before Brexit, it seemed logical that the UK, as a member of the EU, would safeguard European growers in Southern Europe, like Spain, Portugal, and Italy. It is no longer necessary for the UK to maintain this advantage in favor of European growers at the expense of British taxation on Moroccan products, especially at times of the year when only Moroccan supply is available on the market and does not compete with European, let alone British, production. In the instance of cucumbers, which are now subject to customs taxes of 12.8%, Morocco paid no duties for several years before Brexit. Moroccan tomatoes were shipped to the United Kingdom with 0% duty until quotas were depleted and then at a customs rate of 3.5% in the off-season and 5.7% from May through the end of the season. The UK-Morocco Association Agreement came into force on January 1st, 2021, after a two-year preparation and compliance. Morocco uses two quotas for fresh and chilled tomatoes, depending on the seasonality. From October 1st to May 31st import quota for fresh tomatoes is 42,842 MT; from November 1st to May 31st, the import quota is just 4,668 MT.

Source: Tridge and TradeMap

Moroccan vegetable exports to the UK have steadily increased since the implementation of Brexit. However, as Moroccan exports to the UK rise, there is an increasing need to address new difficulties, such as the customs issue.

On the other hand, competition from the EU is burdened with stricter regulations, with the EU's Farm to Fork strategy limiting pesticide usage and increasing packaging, as well as other additional costs related to vegetable production. Tridge follows happenings in the fresh tomato trade closely, and despite the recent analysis New Quotas on Moroccan Tomato Exports to Worsen the European Shortage, there is room for improvement in the UK’s tariff implementation regarding fresh vegetables from Morocco, and it will certainly boost trade between the two countries. As it stands now, given the quota implementation and current status of customs regulations, Tridge expects a lower volume of tomatoes shipped from Morocco to the UK.