As government carries out negotiations for a new agreement with the EU on food and drink trade, the Food and Drink Federation (FDF) – which represents the UK’s 12,000 food and drink manufacturers – has set out its top ten key priorities to ensure the deal delivers for the UK.
Exports to the EU have fallen almost a quarter (23.4%) over the last five years, when compared with the five years prior to Brexit1. The Sanitary and Phytosanitary (SPS) agreement will be a positive step towards easing the complexity food and drink manufacturers currently face when trading with our nearest and most important trade partner, removing burdensome certificates and checks at borders.
However, achieving this will require alignment with the EU across more than 100 areas of food safety regulation – a significant shift in UK policy which comes with risks and potential unintended consequences for the nation’s food and drink manufacturers.
For example, where the UK has adopted different policies to the EU on pesticides in recent years, a recent report showed that aligning to EU regulations without sufficient transition periods, could cost UK businesses up to £810m2. Additionally, Swiss businesses had 24 months to adapt to similar changes as part of its arrangement with the EU, while the UK plans to implement these changes by 2027.
Karen Betts, Chief Executive, The Food and Drink Federation (FDF), said:
“Europe is our biggest trading partner for food and drink, so getting the detail of the SPS agreement right couldn’t be more important. First and foremost, businesses need to know what to do by when, and how long will they have to comply. Early clarity on regulatory changes, allowing sufficient transition periods, and ensuring our voice is heard for decisions that will impact UK businesses in the future are non-negotiable to protect the competitiveness and long-term resilience of our sector.
“The scale of the coming challenge for government is huge but we stand ready to work closely with them to ensure this deal delivers for the UK, by removing barriers to trade and helping to recover lost ground on our exports to Europe.”
To mitigate against risks, FDF is outlining ten crucial priorities which government must act on to protect the competitiveness and resilience of the nation’s food and drink supply chain:
1. Early and transparent communication with businesses
o With most of the agreement in place, businesses need clear guidance on where EU and UK regulation has diverged, and what will fall into scope of the new agreement, so they can prepare properly and don’t face a cliff-edge
2. Communicate changes with global suppliers
o In 2024, the UK introduced a new approach to global imports, but it will now revert to the EU’s approach to imports from abroad. It’s essential that government communicates this with ingredient suppliers from overseas so they also have time to adapt to prevent disruptions to the UK’s food supply chains
3. If we can change the rules now to make things easier for businesses, then we should
o Where the EU has more advanced frameworks and authorisations then the UK should align now so our businesses are not disadvantaged, for example align authorisation of new, innovative food ingredients.
4. Ensure that the UK has a voice in EU decision making
o The UK must have a seat at the table for future EU decision making, to ensure that policy decisions don’t have negative impacts on UK businesses
5. Allow sufficient transition periods for companies to adjust
· Sufficient transition or exemption periods are essential to minimise disruptions to supply chains, particularly for long shelf-life products that don’t meet EU regulations, but will have been made well in advance of the deal coming into force
6. Retaining control over national legislation in specified areas
o The UK has specified some potential areas to retain control over national legislation to protect UK-specific industries – we must ensure these carve outs are continually assessed so we stay competitive
7. Prepare for future supply chain disruptions
o Ensure there are mechanisms in place to safeguard against supply chain shocks, such as the UK having its own national measures on pesticide use in the event of a poor harvest
8. Plan for the removal of ‘Not for EU’ labelling
o The SPS agreement has the benefit of removing the need for ‘Not for EU’ labelling for products sent to Northern Ireland. Engaging retailers, logistics partners and manufacturers early will help ensure we see the benefits of this
9. Monitor future EU policy development
o Have procedures in place to monitor future EU policy and regulation developments so we can shape their impact and prepare businesses properly for their implementation
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10. Provide the right support for businesses to make the most of the new agreement
o SPS is only one part of the trading puzzle. Providing practical, tailored support for food and drink businesses will help them make the most of new opportunities to revitalise EU exports
