UK-EU deal: How does it affect food and farming?

Keir Starmer has today unveiled a new UK-EU agreement, including an SPS agreement and removal of some routine checks on animal and plant products.

The government said the agreement will make it easier for food and drink to be imported and exported, reducing the red tape that led to lengthy lorry queues at the border. The agreement has no time limit.

Some routine checks on animal and plant products will be removed completely, allowing goods to flow freely, including between Great Britain and Northern Ireland. 

For the first time since Brexit, the UK will be able to sell products such as burgers and sausages in the EU again. 

Pragmatic agreement

The SPS agreement was broadly welcomed by farming organisations, which stressed the importance of the EU as a trading partner. 

Dr Judith Bryans, chief executive of Dairy UK said the EU is “incredibly valuable” for the dairy and agri-food sector and the easing of admin requirements will be very welcome for its members.

The British Meat Processors Association also welcomed the news, saying early signs suggest the deal is a “pragmatic agreement” that will be good for businesses and consumers.

It said in a statement: “The joint declaration, whilst in the early stages, promises to bring back all the trade that simply ceased after Brexit due to crippling red tape and tens of millions of extra costs.”

BMPA also said that it’s a “common misunderstanding” that the SPS agreement makes Britain a ‘rule taker’. 

“In reality, we must comply with the rules of any of our trading partners if we want to export to them – just like America must comply with British rules if they want to send us their products.  

“This means we have been aligned with EU rules and standards all along. 

“The difference this new deal will make is that Britain, unlike their other third country trading partners, will benefit from true, unfettered access to their market and massively reduced trade friction. It will boost trade and make us more competitive.”

The existing arrangement has meant providing a “mountain of paperwork” and high costs to prove compliance, with no added value. 

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“Unnecessary” surrender of control

However, the Country Land and Business Association viewed the deal less warmly, asking: “Is a bad deal better than no deal?”

President Victoria Vyvyan noted that the EU is a key market for UK produce, and lower export costs will help make British goods more competitive for EU consumers. 

However, she added: “Signing up to allow the European Court of Justice to impose decisions affecting our goods is an unnecessary surrender of control. 

“We need immediate reassurance that the UK will have a voice in the decision-making process in the Sanitary and Phytosanitary Agreement.

“Cutting red tape on food exports and plant and animal health for trade sounds positive if unlikely, but tying us to an agreement that involves European Court of Justice oversight is deeply concerning and could hinder our ability to strike future trade deals with other countries.”

UK needs to set its own policies

The NFU welcomed the deal, particularly the SPS agreement, but stressed the need to secure vital exclusions from dynamic alignment.

The Precision Breeding Bill must be top of the government’s agenda, the union said, urging the government to protect the UK’s ability to make crucial regulatory decisions in this area, alongside others, and foster continued innovation and research.

NFU president Tom Bradshaw said that as negotiations continue it’s vital to safeguard progress in precision breeding and other sectors.

“Despite the benefits this deal brings, full dynamic alignment comes at a significant cost of committing to future EU rules, in which the UK will have little say.”

The Agricultural Industries Confederation (AIC) commended the efforts of the government, but also raised concerns about the impacts of dynamic alignment in the SPS regime, including pesticides.

“AIC believes it is important that England’s Precision Breeding Act continues to operate independently, as the EU develops its own ‘New Genomic Techniques’ proposals.”

Key trading partner

AHDB analysis has previously shown that non-tariff measures (NTMs) added 5-8% to costs for exporting livestock products and 2-5% to costs for exporting plant-based products to the EU.

Head of economics Sarah Baker said: “Since leaving the EU, added trade friction has disproportionately impacted SME export businesses most notably with the amount of red tape creating challenges around groupage. 

“Export Health Certificate (EHC) cost has also added an extra financial burden across the industry.”

Despite recent headlines around the UK’s trading relationship with the US, she added:

“The EU market is and will remain our key trading partner due to our proximity to market and established supply chains. 

“Any agreement that lowers trade friction, smoothing trade between the UK and the EU would be good news for UK agricultural exporters.”

The AHDB says the EU remains the UK’s most important market for agri-food exports, with 79% of beef exports going to the EU in 2022-24, as well as 37% pork, 94% sheep meat and 78% cheese.

Meanwhile, head of market access Ouafa Doxon added: “Strengthening market access will benefit UK meat exporters, support food supply chain resilience, and reinforce the UK’s position as a key trading partner with the EU.”

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