EU trade negotiations - the latest news
Chancellor Rachel Reeves has argued that the UK is "in a better place than any other country" in terms of trade after recent deals with the EU, the US, and India. This follows the recent UK-EU Summit in London, when Sir Keir Starmer negotiated agreements with the European Union and claimed that “We have dramatically improved our trading ties with the largest economy in the world, the US, the fastest growing economy in the world, India and the largest trading bloc in the world, the EU".
allmanhall’s Procurement & Sustainability Director, Mike Meek, examines the parts of the EU agreement which impact the food sector.
Mike explains that “The new deal signals a shift toward smoother UK-EU food trade, giving food and drink businesses greater confidence to trade across borders. While the headlines are encouraging, detailed negotiations will continue through to the end of 2025 — so it’s vital that businesses stay engaged as the practical details materialise.”
A new agreement for the fishing industry
A key aspect of the agreement involves granting European fishing boats an additional 12 years of access to British waters. In return, some trade frictions will be eased. The 2020 Brexit deal, which allowed the UK to reclaim 25% of EU fishing quotas, was set to expire next year. The UK will continue to negotiate yearly quotas with the EU and Norway and will issue licenses to regulate who can fish in its waters. Additionally, there will be a £360 million “Fishing and Coastal Growth Fund” established to invest in new technology and equipment.
Fishing only accounts for an estimated 0.04% of UK GDP, but British control over its fishing waters was a big issue in the Brexit campaign, and therefore it is politically very sensitive. Other party leaders have not shown overwhelming support for the new deal and Conservative leader Kemi Badenoch said giving the EU access to British waters for 12 years “was three times longer than the government wanted”. Some UK fishing groups are also critical of the deal. Elspeth Macdonald, who represents 450 fishing boats as chief executive of the Scottish Fishermen’s Federation says: “This deal is a horror show for Scottish fishermen, far worse than Boris Johnson’s botched Brexit agreement.”
However, the terms of the agreement mean that it will now be easier for UK fishermen to export their products. In 2023, the UK exported £1.2 billion of fish to the EU, around 70% of all fish exports. Tavish Scott from Salmon Scotland, which represents salmon farming in Scotland, says the agreement to reduce checks would “speed up the delivery of our premium salmon to market”.
Fewer checks on food imports and exports
Since Brexit, UK goods traveling to the EU, including food products, have faced new checks and additional paperwork. Some items, such as UK exports of raw burgers and sausages, have been banned from entering the EU because they do not meet its strict import regulations. As a result, UK food exports to the EU have declined significantly, with volumes in 2024 falling by 34% compared to 2019. The industry attributes this drop partly to the added red tape.
In exchange for extending the current fishing regulations, the UK has secured an agreement to reduce checks on food exports to the EU. As a result, most routine border checks on animal and plant shipments to and from the EU will be eliminated. This new sanitary and phytosanitary (SPS) agreement allows the UK to sell raw burgers and sausages to the EU for the first time since Brexit.
Under the terms of the deal, the UK is expected to comply with EU rules that it does not create, with oversight from the European Court of Justice. However, the UK has the option to diverge from these rules as long as it maintains similar standards and does not negatively impact EU trade.
Future trading relations with the European Union
Mike concludes that “With UK food and drink exports to the EU still trailing pre-Brexit levels, these pragmatic amendments offer a chance to reclaim lost ground, whilst avoiding future carbon taxes on relevant products between the UK and EU.”