The Falkland Islands bargaining chip that could be used to strike new Brexit deal

The Falkland islands were excluded from the post-Brexit trade deal with the EU (Image: Getty)

The Falkland Islands government is lobbying the Labour Party to secure concessions for its exports of squid and other food products to the European Union in its upcoming "reset" talks with Brussels.

Before the advent of Brexit, the Falklands was able to export its products tariff-free to the EU's single market.

However, in a major blow to its fisheries industry, the islands were not included in post-Brexit trade talks, which resulted in the signing of the Trade and Cooperation Agreement (TCA).

As a result, tariffs of 6% are levied on its loligo squid, while tuna and salmon face up to 18 percent levies and lamb 43 percent.

The tariffs, which hit £15 million last year, pose an existential threat to the Falklands' fisheries industry given that 94 percent of its products are destined for the EU.

The Falklands exports large quantities of squid to the EU (Image: Getty)

At the same time, the industry generates around half the island's GDP.

Teslyn Barkman, who is responsible for fisheries on the Falklands, argued that tariff-free exports to the EU are a "win-win" for both sides.

"If you're in Spain and enjoying a lovely bowl of calamari, there is about a one in two chance that it’s come from the Falkland Islands," she told Politico.

Falklands officials are confident that their position is strongly supported by the Labour government.

One told Politico they believed Cabinet Office minister Nick Thomas-Symonds, who will lead negotiations with the EU, had their backs.

However, there are fears the EU could seek to use the Falklands as a bargaining chip in its own fishing disputes with the UK.

Brussels is at loggerheads with Downing Street over London's decision to ban bottom trawling in its territorial waters.

The British government is also facing a legal challenge from the EU over another ban on sand eel catches.

A Downing Street spokesperson insisted the UK government would do everything in its power to help the Falklands.

They said: "The UK understands the importance of tariff free trading with the EU for the Falkland Islanders and ministers and officials will continue to work closely with the Falkland Islands government," they said.

"We will protect the interests of our fishers and fulfil our international commitments to protect the marine environment."