The new EU-UK Trade Agreement aims to reduce the 'red tape' around the import and export of food and beverages, but what will this mean for the food production industry?

In the five years since the UK’s departure from the European Union, goods travelling to Northern Ireland and the EU have faced heightened checks and control measures. There has also been an EU ban on UK exports of sausages, mince, and chilled meats.

The introduction of physical checks and additional paperwork is often tied to a reduction in UK exports to the EU, with the volume of exported goods in 2024 down by 34% when compared to the volume of exported goods in 2019*.

With many in the food industry frustrated by the amount of red tape and associated delays at the EU borders, the government has unveiled plans for a new EU-UK Trade Agreement in the hopes of resolving these issues. Referred to as a ‘reset’ deal, this agreement is yet to be finalised as a legal text and is unlikely to be implemented until 2026 at the earliest.

In the following article, we will address the possible contents of this deal, along with the potential consequences for the food production industry.

Importing and Exporting Food and Drink

As part of the proposed ‘reset’ deal, food and drink products imported and exported between the UK and EU could be covered by a new SPS Agreement.

An SPS Agreement is an Agreement on the Application of Sanitary and Phytosanitary Measures. Its primary objective is to protect human, animal, and plant life or health, without posing any unjustifiable restrictions on trade.

The new agreement promises to remove some of the routine checks currently required for the import and export of animal and plant products – making it easier to trade and reducing the length of vehicle queues at the border.

In important news for the meat production and preparation industry, the ‘reset’ deal could also lift the current EU ban on UK exports of sausages, mince and chilled meats.

Although these changes would represent a dramatic shift in border controls between the UK and EU, the UK would still be required to accept a degree of alignment to EU rules – following future EU food standards as a form of ‘dynamic alignment.’ The UK would also have to accept the role of the European Court of Justice in overseeing the agreement. Additionally, a financial contribution would be required, although the exact details are yet to be confirmed.

EU and UK Fishing Rights

Currently, the UK and EU operate under the agreement that EU boats have access to UK waters, so long as they transfer 25% of their fishing quota to UK fleets. This agreement was set to expire in 2026.

The government’s new ‘reset’ deal would grant the EU “full reciprocal access to waters to fish until June 2038”. On the one hand, this would take away the UK’s ability to negotiate new fishing rights for over a decade. On the other hand, the wider agreement to reduce checks and control measures could make it easier for the UK fishing industry to export products.

Northern Ireland and the Irish Sea Border

First established in 2019, then revised in 2023, the Windsor Framework is the Brexit trading arrangement for Northern Ireland.

In accordance with this framework, Northern Ireland is required to follow many of the EU laws surrounding the regulation of goods. As a result, items travelling from the rest of the UK into Northern Ireland are currently checked and controlled to ensure they align with EU rules.

The new EU-UK Trade Agreement could remove the regulatory differences between Northern Ireland and Great Britain, eliminating the routine checks that are currently slowing down the transport of goods. With Northern Ireland supermarkets largely supplied by English and Scottish distributors, this could help to lower prices and increase the options available to consumers.

Although physical checks may be removed under this new agreement, the trade border in the Irish Sea will still exist, so custom declarations will continue to be required.

Recruitment and Employee Retention

As mentioned above, the details of the ‘reset’ agreement are yet to be confirmed. However, early signs point to the new deal making it easier for young people in the UK and EU to move freely across Europe and Great Britain for educational and employment purposes.

It is unclear how Labour plan to balance this development with the Prime Minister’s pledge to reduce immigration levels; however, it is possible that making it easier for potential employees to enter the UK could help to resolve the Food Industry’s ongoing struggle to recruit and retain operatives.

EU-UK Trade Agreement: Future Planning

Although the finer details of the EU-UK Trade Agreement are yet to be revealed and the deal is unlikely to be implemented in the near future, it is important that the food production industry is prepared for any upcoming changes. If the agreement has the intended effect, it could result in a rise in production demands, especially in areas of the industry that are currently restricted under the original Brexit agreement. At Klipspringer, we specialise in products and solutions that could help you to navigate the challenges and opportunities that lie ahead. We also have a wide selection of resources for you to explore (examples below).

Six Ways to Manage Peak Season Production
How to Reduce Downtime and Maximise the Hygiene Window
The Digitalisation of Food Factories: 5 Points to Consider
5 Ways to Optimise Equipment Management at Your Factory

At Klipspringer, we closely monitor legislative updates so that we are in the best position to support our customers in the food production industry.

If you have any questions about the guidance provided throughout this article, we would be happy to share further information relating to the proposed EU-UK Trade Agreement, along with our wide selection of products and services.

You can contact us directly on 01473461800 or sales@klipspringer.com. Alternatively, you can fill out the contact form below and one of our friendly team members will be in touch.

* Statistic taken from the 2024 Trade Snapshot published by The Food & Drink Federation (FDF). To read the full report, click here.

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