The exports of British food to the European Union (EU) have dropped significantly since Brexit, amounting to nearly £3 billion less in trade per year, according to a recent report by the Centre of Inclusive Trade Policy (CITP). This decline has been attributed to the new border controls, including physical inspections and extensive documentation requirements, which have complicated the trading process.
The CITP report reveals that UK food and agricultural exports to the EU have fallen by more than 16% on average over the three years since Britain exited the single market. This decrease is compared to the three years prior to Brexit, with a loss amounting to £2.8 billion annually.
While factors such as the Covid-19 pandemic and Russia’s invasion of Ukraine coincided with this drop, the study indicates that UK-EU trade, particularly in British exports, has failed to recover to pre-Brexit levels.
Calls for a Veterinary Agreement to Ease Trade Barriers
Industry groups and campaigners are urging Keir Starmer to uphold Labour’s election promise of securing a veterinary deal, known as a Sanitary and Phytosanitary (SPS) agreement, with the EU. This agreement could help reduce trade barriers and ease the burden of post-Brexit border checks.
Since officially leaving the single market on 1 January 2021, Britain has faced significant regulatory changes. The EU now treats the UK as a “third country,” requiring health certificates and conducting physical inspections for agricultural imports. Similarly, after delays, the UK imposed reciprocal measures on plant and animal imports in January 2023, with physical checks starting in April. These measures aim to prevent the importation of plant and animal diseases but have added substantial costs and administrative hurdles for exporters.
The CITP report highlights that regulatory requirements have become a “major obstacle” to growth for many businesses. Since Brexit, exporters of meat and dairy products alone have spent over £205 million on export health certificates, according to an earlier report by The Guardian.
Regulatory Divergence Creates New Barriers
The CITP notes that regulatory divergence between the UK and the EU since Brexit has further complicated trade. For instance, the EU has introduced stricter standards in areas such as pesticides, veterinary drugs, and packaging, while the UK has implemented tighter animal welfare rules. These differences have increased trade barriers and further disrupted the free movement of goods.
The report emphasizes that harmonizing regulatory requirements through a robust SPS agreement could ease these challenges. However, experts warn that negotiations for such agreements could take years to conclude.
Industry Leaders Call for Action
Emma Knaggs, deputy chief executive of European Movement UK, stresses the urgency of establishing a new SPS agreement. She said, “The government needs to negotiate an agreement that reduces animal health checks, smooths trade across the Channel, and dramatically cuts post-Brexit red tape for UK exporters. Brexit has increased costs, spawned unprecedented bureaucracy, and seriously damaged trade.”
A government spokesperson acknowledged the potential benefits of an SPS agreement, stating, “We have been clear that a veterinary or SPS agreement could boost trade and deliver significant benefits for both sides. Final arrangements are subject to negotiations, but the UK and EU maintain similarly high standards.”
While the road to an SPS agreement may be long, both sides recognize its potential to alleviate the trade barriers created by Brexit.
