Exports of British food to the European Union have dropped by nearly £3 billion annually since the UK exited the single market, according to a report by the Centre for Inclusive Trade Policy (CITP). The decline represents a 16% decrease in food and agricultural exports over the three years following Brexit, compared to the three years prior.
The CITP attributes the decline to regulatory hurdles introduced after Brexit, including health certificates and physical checks at the EU border. The UK government introduced reciprocal measures for imports earlier this year, further complicating trade. These barriers have increased costs and stymied growth opportunities for British exporters, particularly in the meat and dairy sectors, which have reportedly spent over £205 million on export health certificates since leaving the single market.
Campaigners and industry organizations are pressing the UK government to negotiate a veterinary agreement, or SPS (Sanitary and Phytosanitary) deal, with the EU. Such an agreement could reduce or eliminate border checks and lower trade costs. However, while the Labour government has pledged closer alignment with the EU, progress on these negotiations has been slow, and experts caution that reaching a deal could take years.
The report highlights increasing regulatory divergence between the EU and UK, with the EU implementing stricter standards on pesticides, veterinary drugs, and packaging, while the UK enforces tighter animal welfare regulations. These differences have compounded border barriers, further hindering trade.
Emma Knaggs, deputy chief executive of European Movement UK, criticized Brexit's impact, citing increased costs, bureaucracy, and reduced trade. She urged the government to prioritize negotiations for an SPS agreement to alleviate the burdens faced by exporters.
A government spokesperson acknowledged the potential benefits of an SPS agreement, stating, “Final arrangements are subject to negotiations, but the UK and EU have similarly high standards.”
The CITP concluded that aligning regulatory standards could significantly ease trade barriers, but achieving such harmonization will require navigating Brexit-era “red lines” on both sides. Without immediate action, British exporters risk facing prolonged challenges in accessing the EU market.
