The Department for Environment, Food and Rural Affairs (Defra) has recently outlined the anticipated impacts of the new sanitary and phytosanitary (SPS) agreement on UK importers and exporters.
Environment Secretary Emma Reynolds emphasized that these new arrangements aim to reduce bureaucratic hurdles while unlocking growth opportunities for both large and small businesses across the nation. By streamlining processes, the government seeks to enhance the overall trade experience for UK businesses.
The SPS agreement is projected to be implemented by mid-2027, but industry stakeholders are encouraged to start their preparations now. This advice extends even to businesses that currently do not engage in trade with the EU, highlighting the need for readiness as the landscape evolves.
Notably, several expenses that burden businesses are expected to decrease significantly due to this agreement. Key cost reductions include:
- The elimination of Export Health Certificates, which can cost up to £200 for agri-food goods.
- Reduced fees for Phytosanitary Certificates, now estimated at around £25, along with inspection costs averaging at least £127.60.
- The cost of Organic Certificates of Inspection, used for exporting organic products such as lamb and cheese, which typically averages £35.
- Identity check fees on meat and dairy exports, which currently add an average of £31 per load.
- Sampling fees, which can inflate costs from approximately £1,200 for cheese to £1,400 for salmon, with charges also impacting apple and beef loads.
Environment Secretary Emma Reynolds commented: “We are resetting our relationship with the EU, our closest and largest trading partner, to make trade easier and cheaper, and deliver tangible benefits for British businesses.” She further noted, “By reducing delays and unnecessary paperwork, this deal will help keep shelves stocked, protect jobs, and put downward pressure on food price inflation for families across the country.” Reynolds concluded by affirming, “British businesses deserve better and we will work hand-in-hand with them to ensure this deal is a success.”
Food Businesses Appreciate Progress
Alex Freudmann, managing director of M&S Food, expressed optimism regarding the government’s commitment to a smoother trading process. He stated: “It’s good to see that the Government’s EU reset is moving forward, with a renewed commitment to implementation in mid-2027.”
Freudmann added, “The sooner this deal is done the better – it will remove unnecessary bureaucracy between the EU and the UK, easing cost pressures on serving our customers across Great Britain, Northern Ireland, and the Republic of Ireland. It will also give much-needed relief to British farmers in exporting meat, fruit, and vegetables into Europe.” He urges, “It’s now time for all businesses to prepare for this shift so we can make the most of the opportunity – we’ll be getting to work with our suppliers right away.”
Similarly, Bas Padberg, UK managing director at Arla Foods, acknowledged the positive impact of reduced friction in the UK-EU trading relationship. “The progress being made on reducing friction…will be good news for Arla and our farmer owners, as well as for consumers, for food security, and for growing exports into Europe,” he stated. Padberg emphasized the necessity of ensuring these changes offer maximum benefits to everyone, which is why he strongly supports the government’s commitment to engage with businesses and stakeholders in refining practical details.
NFU Advocates for Sufficient Adjustment Time
In response to the forthcoming regulations, Tom Bradshaw, president of the National Farmers’ Union (NFU), highlighted a critical concern from members regarding the need for adequate transition time. He pointed out, “The main thing we’re hearing from our members is the need for a sufficient transition period. Farming is a long-term business – many farmers are making production decisions now that will impact food sold beyond mid-2027.”
Bradshaw further communicated that the government has signaled consideration of transitional arrangements for certain sectors. He cautioned, “If this Agreement is to work for the British farming sector, it cannot be bound by an impractical deadline which will only increase the cost of producing food, both for the domestic and EU market. We need Government to take a pragmatic approach and give farmers the time needed to adjust.”
He also noted the complex nature of the SPS Agreement, which encompasses numerous regulations. Therefore, he stressed the importance of Defra providing clear guidance to farmers and growers on how alignment with EU rules could influence their operations. “We want to hear about any concerns members have over the implementation of the SPS Agreement so we can provide a clear picture to Government of what is needed to ensure farmers and growers can benefit from this deal,” concluded Bradshaw.