At the annual European Horse Network / MEP’s Horse Group Conference in Brussels

European Commission President Ursula von der Leyen opened the conference held in Brussels 16 November 2021 with a message of support. Paull Khan, secretary-general of the European and Mediterranean Horseracing Federation, then spoke on international horse movement and, in specific, in the context of the three political and legal factors of Brexit, the EU Animal Health Law and the review of Animal Welfare regulations, particularly the Transport Regulation.

Khan looked at things primarily through a “thoroughbred lens,” but also included other relevant equine sectors. Explaining why horse movement is so important to our sector, Khan pointed out, “Horse racing is not only a serious sport, it is a serious business. We estimated last year that the economic impact of racing in Europe is some €23bn per annum, and the sector directly employs over 100,000 people, mainly in rural areas.

“Horse racing is widespread across the EU. Seventeen of our European and Mediterranean Horseracing Federation members are EU member states—the same for our sister organisation, the European Trotting Union; and movement of thoroughbreds is central to this industry.”

While other agricultural animals will typically only move internationally once, if at all, usually for slaughter, horses, particularly racehorses and sports horses, frequently move between countries for reasons other than slaughter. Khan stressed the importance of repeating this to those outside our sector: “As legislators may have in their minds ‘travel for slaughter,’ when they think of international travel of horses and other animals.” Almost 90,000 equines in a normal year travel internationally within, or to and from, the EU; and it is estimated that nearly 60% of these movements are not for slaughter.

“For thoroughbreds, it starts at the very beginning—at their conception,” said Khan. “So the movement of mares to visit stallions is essential. And it is vital, for the improvement of the breed and in order that Europe retains its competitive pre-eminence in this area, that mare owners are able to select from a broad panel of stallions, which may be based in other countries. There are growing concerns in the Stud Book community about inbreeding. Limiting the geographical footprint is an obvious way to restrict that gene pool.”

He went on to point out that during the horse’s racing career, the better it is, the more likely it will travel internationally to contest the best races. “Again, this process is critical to the improvement of the breed. The performances of a racehorse within any given country are only truly validated when that horse is tested by racing the best in other countries.”

Moving on to the issues posed by Brexit, Khan reminded us that the three countries with the largest thoroughbred industries—France, Ireland and Great Britain—had relied on the former Tripartite Agreement to allow for largely free and unrestricted travel within this bloc. There were over 26,000 international movements of thoroughbreds annually between these three nations alone. Now, movement between Great Britain and EU countries requires blood tests, the involvement of official vets for health certification, further health-check on entry, pre-notification of the movement, both outbound and return, Customs paperwork (four sets for a return trip) and the payment of value added tax. “The burden in terms of cost, time and hassle of moving a horse has risen starkly,” Khan illustrated.

“There are also welfare issues here,” he continued. “World Horse Welfare tell me that the requirements are impacting compliant traffic but not non-compliant traffic. We have heard of people choosing to send horses from France, destined for Britain by the long sea route to Ireland, then traveling up to Northern Ireland and finally across to mainland Britain, all in order to avoid all this. Clearly not in the horses’ welfare interests. And we know of delays of several hours at Border Control Posts (BCPs) and of horses—most recently a nine-month-old foal, which was sent back to the UK on its own because of a technicality of the paperwork.”

What is frustrating is that so much of this is unnecessary. Khan said, “Taking the health certification requirements first, they are not serving to solve any existing bio-security problem—there were no issues arising out of the movement of horses to and from the UK throughout the 50 years before Brexit. But putting that aside, the requirement to complete lengthy paperwork is unnecessary, given the existence of a digital alternative.

“And secondly, in respect of the VAT, the vast majority of racing and sport horse movements are return journeys—the horse travels to compete, or breed, and then returns. But even though VAT is not ultimately payable in the case of temporary movements, there is the need for connections of the horse to pay the VAT, or put up security against its value and then reclaim it. This is time consuming, not only for the connections of the horses but also for the revenue officials collecting the money who then have to spend time in repaying that money to the connections when the horse has gone home. Repayments are reportedly typically taking five months from some countries. This is a pointless waste of time and effort for horsemen and officials alike.”

What effect has all this had on movement numbers to and from Great Britain? “It’s very difficult, of course, to split the effect of COVID from that of Brexit; but what we can see very clearly is that, in combination, Brexit and COVID have had a downward impact on thoroughbred movements,” Khan reflected.

“It is clear that racing movements, i.e. international runners, suffered badly in the first year of COVID, roughly halving from 2019, whether between Britain and the EU or the rest of the world. It is true that, since Brexit, rather than seeing a further deterioration, we have witnessed a recovery. Racing movements this year, despite Brexit, have been higher than in 2020—24% higher to and from the EU, and 59% higher to and from the rest of the world. But, while we must be optimistic that the worst effects of COVID are behind us, we cannot be so confident about Brexit. We just don’t know how owners’ and breeders’ behaviour will be modified in future years by the stark reality of their experience in this, ‘Year One’. Now that they know what the final bill added up to and how long it took for them to receive their VAT repayments, it is not unreasonable to surmise that they may choose not to repeat the exercise in the future.”

Even given this year’s recovery, he noted that international runners between Britain and the EU have fallen by one-third against 2019 levels, and those with the rest of the world are down by 13%.

“This means that EU owners and trainers have had fewer opportunities to test their horses against those in Britain, and races on both sides of the water have been weakened, both in their appeal to the public and as international testing grounds.

“This could have a long-term damaging effect in an area where Europe leads the world. No fewer than 38 of the world’s top 100 races are run in Europe—more than Asia which has 23, Australasia 26 and the Americas 13. I mentioned the economic impact of European horse racing over €23bn per annum; much of this is linked to the quality of the races that are run here.”

“Tracing a very different pattern have been non-racing movements (excluding Ireland), which were far more resilient to COVID than were racing movements but which have suffered post-Brexit in a way that racing movements have not. Movements for breeding and other purposes outnumber racing movements by around six to one.

“Looking at movements between Britain and Continental EU—we don’t have these figures for Ireland because Britain and Ireland share a common Stud Book—we see they have more than halved, from 4,283 to 1,964. An indication of the ‘Brexit effect’ can be inferred from the fact that movements between Britain and the rest of the world only reduced by 13%, despite COVID.

“Non-racing movements to and from Ireland have held up remarkably well, being within 4% of 2019 levels. Overall, thoroughbred journeys between Britain and the EU are one-third down on two years ago.

“This isn’t just affecting racing. The European Equestrian Federation have told me that they have seen reduced numbers, both of British competitors at European events and Europeans travelling to Britain. And, taking the perspective of Ireland, we see a very similar picture. Non-racing movement of thoroughbreds between Ireland and the rest of the EU has fallen from 3,951 to 2,407—a 39% fall.

“Overall movements to and from Ireland would appear to be down by one-quarter—less, therefore, than the one-third fall to and from Britain. As in Britain, racing movements have shown a recovery this year, whereas non-racing movements, except those too and from Britain which have been static, have continued to fall.”

Animal Health Law was the next major issue to be examined in detail by Khan, although as he pointed out, the AHL has only applied since April; and member states are at different stages of their practical implementation. “In brief, it is too soon to gauge its impact on horse movement,” he warned.

“The new requirements for the registration of operators and establishments, the registration of the place where a horse is habitually kept, the need to record all arrivals and departures, etc., will create additional work. And it could be argued that the problems these measures are being brought in to address are largely absent in the race and sport horse sectors; and they come at a time when the equine sector is already reeling from the impact of COVID.

“What I would say, however, cautiously, is that, from the soundings I have been making, my impression is that, at least in our sector, there are no widespread concerns over the impact of this new legislation per se on horse movements.”

He then moved on to the third piece of legislation, the Animal Transport Regulation. “Here, we’re concerned that some of the recommendations of the European Parliament’s Committee of Inquiry, ANIT, do not eventually become law.”

Subsequent to the Conference, ANIT produced its final report in early December, and Khan has provided us with an update on the current situation.

“We are pleased that a number of the points we and our sister organisations made appear to have been heeded. There was the threat of a blanket ban on transport of live horses to third countries, but this has gone, as has a requirement for a vet to be present at all loadings and unloadings. The fact that mares need to travel to visit stallions in order to conform with the global ban on artificial breeding methods in the thoroughbred world has also been acknowledged. It would seem, too, that the hard-won derogation from the journey limit of eight hours has been retained.

“What we need to concentrate on in the coming months, and make representations to the Commission as appropriate, includes the proposed ban on travelling horses outside of the range -5 degrees to +30 degrees, and ensuring that travel of horses by horsebox on roll-on/roll-off ferries is differentiated from travel by sea vessel. I’m sure our colleagues in the breeding world will also want to ensure that there is a derogation from any ban on travelling unweaned foals even if they are accompanied by their dams, and the proposed ban on animals travelling when in the last third of gestation.”

Returning to the questions posed at the conference, Khan provided advice on how decision makers can support the industry. “Taking Brexit first, it is the unanimous view of all 26 EMHF member countries, that an easing of movement between the EU and the UK will benefit the whole of the European thoroughbred industry. We need to address avoidable areas of friction, which are only likely to worsen when the UK introduces its own BCPs to mirror those in EU countries. And I come back to the two things I mentioned earlier: unnecessary paperwork and unnecessary VAT payments. We’re hopeful that the newly formed Sanitary & Phytosanitary Committee can help here and we hope that there will be some expert input from the equine sector on that Committee.”

He also called for a commitment to embrace digital technology to replace the current antiquated paper-based systems. “The use of equine e-passports for equine identification is already providing welfare and health benefits through the eradication of tampered and fraudulent passports and improved traceability through real-time validation and audit trails. These digital passports, which have been built by both the sport horse and racehorse sectors—all Thoroughbreds in Ireland and Britain have them—comprise identity, vaccination and veterinary records, movement and ownership. We need governments to work with us to enhance this existing technology through interoperability with the systems of relevant government agencies: vets, Customs, revenue, etc. This will reduce cost, reduce time, reduce the risk of error and fraud. It will also cut down waiting times and workloads at Border Control. Vets at BCPs have many other, far more pressing tasks from which checking high health horses is currently just a distraction; and this can be stopped.

“Of course, acceptance of e-passports from selected third countries will be necessary to address the Brexit issue, and current EU Law precludes this.

“More generally, we seek the introduction of a system which recognises that, where high health status of a horse population can be demonstrated, the regulatory burden imposed on the movements of such horses should be appropriately reduced. Such an evidence-led, risk-based approach— such as the High Health Breeding “HHB” concept, which the European Federation of Thoroughbred Breeders have advocated and is now being examined by the chief veterinary officers (CVOs) of Ireland, France, Germany and the Scandinavian countries, or the similar High Health Horse concept which the racing and sport horse sectors proposed to the Commission some four years ago—would make best use of stretched veterinary and administrative resources, [would] give much-needed respite to the equine sector and benefit horse welfare.

“We also call upon the revenue authorities in member states and the UK to adopt the flexibility, which it is within their gift to do, in agreeing sensible exemptions from the requirement to make payments in relation to value added tax in the case of temporary movements of horses. The racing industries in the most affected countries are all engaging with their respective revenue authorities on this question. Support from MEPs would be very valuable.

And on the Transport Regulation, we ask that our legitimate concerns are taken into account and that we avoid additional provisions in law which would unnecessarily seriously damage the equine sector further.”

Khan concluded on a positive note by pointing out, “I’d just like to underline that those in the racing and breeding community are passionate about their horses. We have long worked closely with World Horse Welfare and others, and we are fully behind their efforts and those of MEPs towards improving conditions for horses.”