On the brink of implementing ‘not for EU’ labels, the UK government has decided to abandon this plan, albeit not entirely dismissing the possibility of a future reversal.
These new regulations were scheduled to take effect on October 1, concerning UK-manufactured food and beverages moving across the Irish Sea to Northern Ireland as part of the post-Brexit trading framework with the EU.
Local food industry organizations are relieved by this announcement, especially since the legislation was set to impact UK goods remaining in the domestic market, unrelated to Northern Ireland.
One organization, the Provision Trade Federation (PTF), criticized the UK government for not scrapping the plan earlier to prevent additional costs incurred by local food and beverage producers prior to the legislation’s enforcement.
After discussions initiated in February with relevant stakeholders, the government announced yesterday (September 30) that it will “not proceed with the introduction of ‘not for EU’ labelling on a mandatory basis in Great Britain on October 1.” However, the government indicated that it would retain the authority to implement ‘not for EU’ labelling in the future if necessary to secure supply across the UK internal market.
The plans were part of the so-called Windsor Framework, introduced by former Prime Minister Rishi Sunak in February 2023 in agreement with EU President Ursula von der Leyen. This framework is ongoing and aims to facilitate trade between Great Britain and Northern Ireland following Brexit.
It replaces the Northern Ireland Protocol from the post-Brexit period, which considered the province as part of the EU trading bloc solely for trade purposes.
The incoming UK Labour government expressed support for businesses, stating, “We welcome the ongoing commitment of businesses to continue to serve their customers in Northern Ireland.” They remain dedicated to ensuring the continuous supply of supermarket goods to Northern Ireland.
When launching the consultation on ‘not for EU’ labelling in February, the previous government intended to establish uniform labelling requirements for agri-food products across Great Britain, preventing any disincentives for businesses to avoid Northern Ireland markets.
Industry reactions have varied. Karen Betts, CEO of the Food and Drink Federation, noted that the government appears to have “listened” to concerns, opting for a flexible approach regarding labelling. She stated, “Our members are committed to supplying all our products everywhere across the UK, including to Northern Ireland.” This revised approach will help maintain competitive prices for consumers and facilitate stock and supply management, ultimately supporting investment in UK manufacturing.
Rod Addy, director general of the PTF, referred to the labelling plans as a “crazy idea,” acknowledging that the industry is not entirely in the clear due to the potential for future implementation. He remarked, “For those who have already invested to change their labelling and product runs, this will be cold comfort, but at least it means they won’t have to face recurring costs.” He optimistically added, “Let’s hope the UK government can negotiate a solution with the EU that renders this unnecessary.”
Additionally, the British Meat Processors Association (BMPA) criticized the delayed announcement from the government, indicating that the new Labour leadership has not provided clarity regarding the current government’s stance. BMPA trade policy manager Nan Jones stated, “Many companies have incurred unnecessary costs preparing for this, only to find out it’s been put on hold.” She emphasized that alignments with the EU could alleviate ongoing issues related to movements in and out of Northern Ireland.
As the food and beverage industry continues to navigate these developments, businesses will benefit from the insights into consumer trends and the overall market dynamics, optimizing their positioning in a changing landscape.