The new UK-EU SPS Agreement will make it easier for food and drink to be imported and exported by reducing the red tape placed on businesses that led to long lorry queues at the border. The agreement will have no time limit. Some routine checks on animal and plant products will be removed completely, allowing goods to flow freely again, including between Britain and NI. The government said that this could lower food prices and increase choice in supermarket shelves.
Food and Drink Trade Simplification under the UK-EU SPS Agreement
The UK will also be able to sell various products, such as burgers and sausages, back into the EU again, supporting these vital British industries. EU fishing vessels will also get 12 more years of access to UK waters.
Protection of British Steel Exports and Avoidance of EU Carbon Tax
British steel exports are protected from new EU rules and restrictive tariffs, through a bespoke arrangement for the UK that will save UK steel £25 million per year. Businesses will also avoid the EU carbon tax due to come in next year through linking the UK’s Emissions Trading System.
Youth Mobility and Cooperation Between the UK and EU
The UK and EU have also agreed to co-operate further with “youth experience scheme” that could see young people able to work and travel freely in Europe again. It is also negotiating to rejoin the Erasmus+ programme.
Industry Leaders React to the UK-EU SPS Agreement Impact on Manufacturing
In response to this, leaders have commented on how this deal will affect the manufacturing sector,
Stephen Phipson CBE, CEO of Make UK, the manufacturers' organisation, said: “We welcome the Government’s energy and bravery in seeking to support British industry and jobs by taking this pragmatic approach to improving relations with the EU, still our largest trading partner. The formal UK-EU defence and security pact agreed today will allow for closer cooperation and information sharing, while paving the way for UK-based firms to access the Security Action for Europe (Safe) which provides loans for defence projects.
“Removing trade frictions on GB food imports and exports is a priority and will help bring an end to the spectre of food exports bound for the EU lying rotting in British ports while awaiting customs clearance. And confirmation that the UK and EU will look to strengthen and cooperate on food standards (SPS) arrangements will bring much needed clarity to the sector.
“The agreement that the UK and EU will link their carbon markets to avoid taxes on carbon-intensive goods like steel and cement travelling between the UK and EU is also welcome news as is the proposed Youth Mobility Scheme, which will allow young talent to flow between the UK and the EU once again.
“We urge Government to continue this good work and make this first UK-EU political summit of this new Government just the beginning in further refinements of future trading arrangements so trade and growth prospects can continue to be improved for companies on both sides of the Channel.”
