Brexit causes steep decline in UK food exports
- Food exports from the UK to the EU have dropped significantly since the end of Brexit's transition period, with a reported decline of 16.3% annually.
- The UK's new trade barriers and regulatory divergences have complicated trade and increased costs for exporters.
- Industry leaders urge for a new agreement with the EU to alleviate customs burdens and improve trade conditions, highlighting the unfavorable outcomes of Brexit.
After the Brexit transition period ended, British food sales to the EU experienced a significant downturn, with a near 20% decrease reported by the Centre for Inclusive Trade Policy (CITP). The research highlights a 16.3% annual decline in food exports due to new physical, documentary, and identity checks that have complicated trade processes. Alongside the drop in sales, British food standards have generally declined compared to EU regulations, which have become stricter. The UK has only introduced stronger laws in specific areas like animal welfare, while most food-related legislation had previously been EU-driven before Brexit. The situation has worsened post-Brexit, with the UK adopting a third country status that imposes additional trade barriers. Sir Keir Starmer, during his election campaign, pledged to negotiate a veterinary agreement with the EU to alleviate border checks and reduce food costs, aligning with ongoing discussions aimed at renewing the Trade and Cooperation Agreement (TCA) by 2025. However, the Prime Minister, Rishi Sunak, has established strict boundaries on rejoining the single market or customs union, complicating potential resolutions. Industry advocates are vocal about the negative impact of Brexit, calling for a reduction in bureaucratic red tape that hampers trading with the EU, which is perceived as the UK's largest market for food exports. Prominent figures such as Liz Webster of the Save British Farming campaign and Mark English from the European Movement UK highlight the urgent need for a new sanitary and phytosanitary (SPS) agreement to reduce costs and streamline trade. They argue that Brexit has created more obstacles than benefits for traders, illustrating the challenges of balancing sovereignty with access to the EU marketplace. The pressure on Sir Keir Starmer mounts as he faces the consequences of Brexit on the food export industry ahead of important negotiations in the coming year. This ongoing dilemma underscores the complex relationship between the UK and EU post-Brexit and raises questions about the long-term viability and benefits of the current arrangements for British exporters.