UK and EU agree draft deal to cut food export checks
Agreement aims to remove significant red tape and fees for exporters trading with the bloc.
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The United Kingdom and the European Union have reached a draft agreement to remove post-Brexit checks on food and agricultural exports. The deal, detailed in a 200-page document, aims to reduce red tape that has affected businesses since the UK left the EU's single market. This agreement is considered the most significant part of a broader effort to reset UK-EU relations.
Financial Benefits for Exporters
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Under the proposed Sanitary and Phytosanitary (SPS) agreement, exporters will no longer need to pay for £200 Export Health Certificates and £25 Phytosanitary certificates. The deal is also expected to remove the need for inspector fees, organic certificates, some port fees, and sampling fees for both exports and imports between the UK and the EU. The UK government forecasts that these changes could result in annual economic benefits of £5.1 billion for the UK economy.
The agreement will also permit the resumption of UK exports of fresh sausages, burgers, shellfish from domestic waters, and seed potatoes to the EU. Additionally, it will facilitate the process for UK pets travelling to the EU, allowing for pet passports.
Regulatory Alignment and Future Discussions
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As part of the agreement, the UK will commit to observing and adapting to existing EU regulations concerning plant, animal, and food trade standards, a process known as "dynamic alignment". While UK rules will largely remain aligned with EU standards, arrangements are being made for specific areas where England has diverged, such as "precision breeding" techniques. The government has introduced a European Partnerships Bill to provide a legal framework for adopting new EU rules and facilitating the linking of the UK's emissions trading scheme with the EU's, thereby avoiding the EU's new carbon border tax for UK exporters.
The draft agreements, including those related to emissions trading and a youth travel and work scheme, have been circulated to EU nations for consideration. They are scheduled for discussion at a Coreper meeting of EU ambassadors on Wednesday. Some details regarding the Youth Experience Scheme are expected to be finalised at a political level soon. The draft agreements may also include provisions for UK involvement in defence cooperation and access to law enforcement databases.
Industry and Political Reactions
While supermarkets and farming representatives have expressed support for the food trade plans, some pro-Brexit campaigners have voiced criticism regarding the reintroduction of EU rules. These critics argue that the original post-Brexit trade deal prioritised regulatory freedom over avoiding new red tape. A recent survey by the British Chamber of Commerce found that 56% of exporting businesses desire the removal of EU customs paperwork and delays to support their growth, with this figure rising to 58% among manufacturers.
Shevaun Havilland, director general of the British Chamber of Commerce, stated that the prime minister deserves credit for initiating discussions on the UK's future relationship with Europe. She emphasised the need for the government to examine all available options, understand the trade-offs, and involve businesses in the decision-making process from the outset. The BCC has called for an analysis of potential new relationship models, including a customs union or a "Swiss-style" Single Market relationship.
What Happens Next
The draft SPS agreement will be discussed by EU ambassadors at a Coreper meeting on Wednesday. Further political discussions are anticipated to finalise details on other aspects of the draft agreements, including the Youth Experience Scheme. The UK government plans to use an upcoming summit to launch a broader conversation about the long-term UK-EU relationship.
Questions this report answers
+What is the draft SPS agreement?
The draft Sanitary and Phytosanitary (SPS) agreement is a proposed deal between the UK and EU to remove post-Brexit checks on food and agricultural exports. It aims to eliminate specific certificate fees and inspector costs for businesses trading between the two regions.
+How much could this deal benefit the UK economy?
The UK government estimates that the draft SPS agreement could deliver annual benefits of £5.1 billion to the UK economy. This is largely attributed to the reduction in red tape and associated costs for exporters.
+What fees will exporters no longer have to pay?
Exporters will no longer have to pay for £200 Export Health Certificates and £25 Phytosanitary certificates. The deal also intends to remove other costs such as inspector fees, organic certificates, and some port and sampling fees.
+When will the draft agreements be discussed?
The draft agreements are scheduled for discussion at a meeting of EU ambassadors, known as Coreper, on Wednesday. This meeting will review the proposed SPS agreement and other related draft texts.
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