EU trade deal gets positive response from grocery sector
The new ‘reset’ trade deal between the UK and the EU will see a reduction in the red tape that has slowed the movement of food products across the English Channel since Brexit, promises the UK government.
Prime Minister Kier Starmer has listed cheaper supermarket prices and shorter passport queues as visible benefits of the deal, which was announced yesterday afternoon (19 May). As well as farming exports and trade, the deal also includes new agreements on fishing rights, travel and defence.
Details of the deal include new Sanitary and Phytosanitary (SPS) measures that will reduce the number of checks on goods being transferred between the two markets. This will reduce the administrative burden on companies and reduce the lengthy lorry queues that have become a feature of border crossings, says the government.
Some routine checks will be removed completely, allowing goods to flow more freely again. This will include products moving between Britain, Northern Ireland, and the Republic of Ireland, which should address some of the issues encountered by retailers with stores in those areas.
“It’s time to look forward. To move on from the stale old debates and political fights to find common sense, practical solutions which get the best for the British people,” said the prime minister.
What does the grocery industry make of the deal?
Retailers, food producers and industry bodies have responded positively to the deal.
“Today’s announcement on trade from the EU-UK Summit is a major step forward,” said Marks and Spencer Food managing director Alex Freudmann in a social media post.
“An SPS agreement with the EU removes the pointless bureaucracy we face in moving our products across Great Britain, Northern Ireland and the Republic of Ireland, and ensures that we can supply the widest range of products at the best possible price to all of our customers. We’re really pleased to see this sort of pragmatic and positive move from the Government.”
“Asda welcomes today’s agreement to progress a UK-EU SPS Agreement,” said a spokesperson for the supermarket.
“This has the potential to significantly reduce costs and bureaucracy both for the fresh produce we import from the EU and the goods we move every day to our customers in Northern Ireland. We look forward to supporting the Government as work begins to finalise the detail, and we hope that this will happen as soon as possible, to deliver the maximum possible benefits for our customers and household budgets in every part of the UK.
“We also hope that this agreement signals a new era of cooperation between the UK and EU, which will lead to simplification of other parts of the Windsor Framework such as customs and environmental regulations – these issues will not be addressed by an SPS agreement.”
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Morrisons chief executive Remi Baitiėh was supportive too. He said, “Sweeping away trade barriers with the EU will remove cost, complexity and delay in food imports from the continent. This promises to ease a source of pressure on food prices and is therefore good news for shoppers. As a fresh food manufacturer we also welcome the prospect of key export markets for our excellent meat and fish becoming more accessible.”
Meanwhile the Co-operative group chief executive Shirine Khoury-Haq said, “Food moving more smoothly between the UK and EU, and GB to NI, whilst maintaining our high standards, is good for growth, for businesses and therefore for the communities we serve.
“At Co-op we welcome the positive steps towards reducing unnecessary friction that have been taken today. We look forward to working with the UK Government to ensure that businesses of all sizes – including smaller businesses – benefit from the new arrangements as the detail is worked through.”
Food and Drink Federation chief executive Karen Betts welcomed the deal. “Trade with the EU is incredibly important to UK food and drink manufacturers. Europe is our single biggest customer, and most of the food and drink we import – from ingredients to finished products – comes from Europe too. However, trade in both directions has become complex and challenging. UK food and drink exports to Europe have fallen by a third since 2019 and businesses continue to face challenges and delays with imports,” she said.
“We’re pleased to see today’s announcement of a much closer UK-EU trading relationship, which acknowledges our shared high standards in food and drink. A high-quality agreement will have clear benefits for consumers and businesses. However, the government must continue to work closely with industry on the detail and ensure the UK is able to influence EU decision making where this impacts British businesses and competitiveness, particularly where the UK aligns with EU rules.”
The Association of Independent Meat Suppliers (AIMS) saw the deal as positive.
“We have been lobbying for the last couple of years for a common-sense approach to create frictionless at the border for both exports and imports from and to the UK, and to the now have 100% paper work checks and up to 30% physical checks removed entirely for red meat, poultry and eggs is very welcome,” said AIMS executive director Dr Jason Aldiss.
“The cost savings in terms of Export Health Certificates, especially on groupage loads, is significant,” added Aldiss. “British products that were banned, such as fresh sausages and burgers will now be enjoyed by our EU neighbours and of course within Northern Ireland as the movement of goods between GB and NI will be now far easier due to the removal of SPS and other requirements”.




