Food and Drink Manufacturers Outline Key Priorities for UK-EU Trade Agreement

The Food and Drink Federation (FDF) has issued a list of ten essential priorities aimed at facilitating a new Sanitary and Phytosanitary (SPS) agreement with the EU.

Importance of the New Agreement

With UK food exports to the EU decreasing by nearly a quarter since Brexit, the FDF emphasizes that removing the complexities and additional costs faced by food and drink manufacturers is vital for restoring trade relationships. They believe that a revised SPS agreement could significantly ease the burdens of border checks and paperwork that are currently hindering exports.

Potential Challenges Ahead

While alignment with EU regulations may streamline operations, the FDF cautions about potential risks. They urge the government to keep the industry well-informed about the SPS agreement’s details and ensure UK representation in future EU decision-making processes.

Current Context

Negotiations between the UK government and EU are ongoing, with the FDF representing approximately 12,000 food and drink manufacturers in the UK. The urgency of the situation is highlighted by the report that food exports to the EU have plummeted by 23.4% over the last five years compared to pre-Brexit levels. Addressing these trade complications is crucial for revitalizing the sector.

The FDF’s Essential Priorities

To secure a favorable outcome from these negotiations, the FDF has outlined ten crucial priorities:

1. Early and Transparent Communication: It’s essential for businesses to receive clear guidance on regulatory divergences between the EU and UK.
2. Communication with Global Suppliers: As the UK reverts to EU standards for imports, timely updates are necessary for overseas suppliers.
3. Adaptation to Easier Rules: Aligning with EU frameworks should be prioritized now to avoid disadvantaging UK producers.
4. UK Representation in EU Decisions: The UK must have a voice regarding policies that could impact its businesses adversely.
5. Sufficient Transition Periods: Transition periods must be long enough to mitigate disruptions in supply chains.
6. Control Over National Legislation: Continuous assessments of areas where the UK retains legislative control are crucial for competitiveness.
7. Preparation for Supply Chain Disruptions: Mechanisms should be in place to address potential shocks in supply chains.
8. Removal of ‘Not for EU’ Labelling: Engagement with stakeholders is needed to maximize the benefits of eliminating this requirement.
9. Monitoring EU Policy Development: Procedures should be established to track future EU regulations to prepare businesses effectively.
10. Support for Maximizing Opportunities: Practical support should be provided to help businesses capitalize on the new agreement.

Conclusion

As negotiations progress, the FDF stresses the need for the government to act on these priorities to safeguard the UK food and drink supply chain. Chief Executive Karen Betts aptly noted the magnitude of the challenge ahead but reaffirmed the readiness of the FDF to collaborate with the government to secure a beneficial outcome for the industry.

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