The United Kingdom and the European Union have reached a draft agreement to remove post-Brexit checks on food and agricultural exports, a move that is expected to significantly reduce red tape for businesses. The deal, which is the most substantial part of a broader "Brexit reset" between the two sides, comes ahead of a UK-EU summit scheduled for later this month.
The draft text for the "SPS" (sanitary and phytosanitary) agreement, comprising approximately 200 pages, has been shared with EU nations for review. Alongside this, draft texts for agreements on emissions trading and a youth travel and work scheme have also been circulated, along with a 15-page joint statement for leaders.
This food trade deal is anticipated to eliminate the need for numerous export documents, including Export Health Certificates and Phytosanitary certificates, as well as inspector fees, organic certificates, and various port and sampling charges. The UK government estimates that the deal will eventually yield annual economic benefits of £5.1 billion.
Under the agreement, exports of products such as fresh sausages, burgers, shellfish from domestic waters, and seed potatoes will be able to resume between the UK and the EU. Additionally, the deal will permit the use of UK pet passports for animals traveling to the EU.
To facilitate the agreement, the UK will commit to observing and adapting to existing EU regulations on plant, animal, and food trade standards through a process known as "dynamic alignment." While UK rules will largely remain aligned with EU standards, specific areas where divergence has occurred, such as in "precision breeding" for plants, are being addressed through transition arrangements as new EU regulations are implemented.
The UK government has also introduced a European Partnerships Bill to provide a legal framework for adopting new EU rules and regulations. This measure will also enable the linking of the UK's emissions trading scheme with the EU's, thereby helping UK exporters avoid the EU's new carbon border tax.
Discussions on the draft agreements are scheduled to take place at a meeting of EU ambassadors. Some specific details regarding the number of participants in a Youth Experience Scheme are expected to be finalized soon. Plans to reconnect electricity markets and potential discounts on foreign student fees for EU students are likely to be deferred to next year.
The draft agreements may also include provisions for UK involvement in defense cooperation initiatives, access to law enforcement databases, and reassurances concerning the EU's "Made in Europe" plans.
While representatives from supermarkets and farmers' groups have supported the food trade plans, some pro-Brexit campaigners have voiced criticism regarding the reapplication of EU rules. The initial post-Brexit trade deal prioritized regulatory freedom for the UK over the avoidance of new regulatory hurdles.
Recent analysis from the British Chamber of Commerce indicates that many of its member businesses are struggling with Brexit-related red tape and favor a closer relationship with the EU. The chamber has proposed exploring various options for a new relationship, including a customs union or a "Swiss-style" Single Market arrangement, and has called on the government to analyze and publish these options.