Resetting Trade Ties: The UK Food and Drink Industry’s Plea to the EU
In a compelling turn of events, over a dozen of the UK’s leading retailers and food producers—including the likes of Marks & Spencer, J Sainsbury, and Asda—are making a serious call to action. They are urging the European Union to ease the burdensome checks on food and drink goods flowing across the Channel and Irish Sea, which they argue are costing the industry billions. This urgent plea arrives just ahead of an important summit on May 19, aimed at resetting trade relations five years post-Brexit.
The Cost of Red Tape
In an open letter addressed to Maroš Šefčovič, the EU Commissioner for Trade and Economic Security, these industry giants highlighted that the “unnecessary red tape” introduced since Brexit has driven operating costs up by an estimated £2 billion. Signatories to the letter include not just supermarket powerhouses like Morrisons and Lidl, but also food producers such as Greencore and Cranswick. The letter underscores the urgent need to harmonize sanitary and phytosanitary regulations, proposing a veterinary agreement that would ensure smoother operations without compromising food safety standards.
The Impact on Product Availability
As the letter conveys, the current regulatory landscape has complicated the ability to provide a diverse range of products at competitive prices, thereby hampering both domestic and international markets. The businesses involved are ready to collaborate and tackle the practical obstacles head-on. In their words: “Now feels like an opportune moment to solidify our economic partnership,” especially as global trading relationships face new challenges.
Political Dynamics and Trade Negotiations
This industry outcry is part of a larger effort to redefine the UK’s relations with the EU, while simultaneously pursuing a trade deal with the United States and mitigating the impact of tariffs introduced during the Trump administration. In a similar vein, the Labour government made a commitment during their manifesto campaign to establish a veterinary agreement with the EU, aimed at minimizing red tape, particularly the cumbersome export health certificates that delay shipments and require specialized teams for compliance.
Northern Ireland’s Unique Challenges
The additional burden of labeling products as “not for EU” for shipments to Northern Ireland, under the Windsor Framework, has further complicated logistics and increased costs for retailers in the region. This excessive labeling obligation has caused unanticipated disruptions, exemplified by a recent incident where custard was reclassified as a dairy product, leading it to vanish from shelves in some Irish and Northern Irish stores until proper licenses and checks were re-established.
A Shift Towards Regulatory Alignment?
Interestingly, recent reports suggest that the UK government may be becoming more open to regulatory alignment with the EU regarding fresh meat and dairy standards as a means to facilitate trade. However, such adjustments could potentially complicate ongoing negotiations for a trade deal with the United States, highlighting the intricate balance between internal and external economic pressures.
Declining Exports and Import Dynamics
Research published last month by the Food & Drink Federation reveals that exports of food from the UK to the EU plummeted by 34% last year compared to 2019, just before the Brexit transition. In contrast, food and drink imports from the EU, which face fewer checks due to government concerns about inflation, increased by 3.3% last year.
Maintaining Food Safety Amidst Trade Challenges
While easing trade regulations is critical for economic recovery, it’s important to note that checks are essential for preventing the spread of diseases. For instance, a recent ban on the import of meat and dairy products aimed to prevent the spread of foot-and-mouth disease in the UK amidst rising cases across Europe.
Conclusion: A Moment of Opportunity
As the UK food and drink industry works to overcome these hurdles, the upcoming summit on May 19 represents a pivotal moment. The potential for a renewed relationship between the UK and the EU could very well shape the future of the food and drink sector, leading to more efficient trade practices and ultimately benefiting consumers and producers alike. Engaging the EU in meaningful dialogue is not just a request but a necessity—one that could set the stage for the next chapter in UK-EU relations.
For further insights into the ongoing negotiations and their implications, check out The Guardian’s coverage on the significant drops in food exports post-Brexit and stay informed on developments in this pressing issue.
