UK/EU Future Trade Deal Negotiations
UK Approach to a Revised EU Trade Deal
Background
As part of the Government’s preparations for negotiations with the EU to improve the current trade deal and reduce friction at the UK/EU border I met Defra and DBT officials primarily to discuss reducing SPS checks through greater alignment.
Retailer Summary of Current Issues
I stressed the following to officials
- We support greater alignment to reduce border checks
- Border checks on imports are adding complexity and costs, although the costs are not significant in the final price for consumers. The biggest problem is delays and disruption to supply chains, and I quoted the recent problems with German imports due to an FMD outbreak as an example.
- On imports, I said it was difficult to comprehensively respond on burdens until full checks are applied to ROI imports
- I explained imports generally were not organised by retailers but we were well aware of issues from suppliers
- On exports, I said this had added considerable burden to retailers, who unlike imports were responsible for the majority of movements. The bureaucracy and time to complete export certification and declarations did not work for retail supply chains, moving multiple products at short notice. I said it had led to reassessments of supply chains, including some changes in sourcing away from UK produce to remove the hurdle
- The impact of reduced checks in the Windsor Framework was a significant challenge for retailers moving food from GB to NI in what had been a seamless UK supply chain previously. Any reduction in requirements due to SPS alignment would reduce risks to availability and choice.
- I also stressed the challenges in meeting compliance within the Windsor Framework to satisfy the EU. Officials had pointed out the UK’s ambition to demonstrate compliance with the current EU deal to strengthen the future negotiating position with the EU
- Whilst the call was primarily on SPS checks I stressed the Government needs to understand the impact of environmental and product safety regulation on both UK/EU imports and exports and movements under the Windsor Frameworks. Divergence on issues such as deforestation, product safety and CBAM will all add complexity and cost to divergent supply chains and the Government should incorporate these issues in its consideration of how it reduces friction
Retail Proposals
- I said greater alignment on all areas impacting on supply chains (SPS, environmental and product safety) would make the biggest difference. Divergence in regulation would add significant problems both at the border and reporting by retailers.
- The Government should push for improved border processes alongside alignment to reduce checks. I included greater use of trusted trader approaches, based on retail and supply chain traceability systems, plus greater digitalisation and co-ordination of submissions. That should apply both to UK/EU imports and exports and Windsor Framework movements
Next Steps for Government
Response from officials
- Appreciate the points on alignment across more than just SPS and would take it into account
- Understood the points on systems change for border checks but were also keen to manage expectations of what could be delivered
- They agreed to stay in contact as Government agrees its position and as it opens negotiations with the EU
- The summit between the UK and EU on 19th May will begin the process and they hope this will then lead to detailed negotiations.
- They agreed to continue to talk to us as negotiations develop. I proposed close work with retail supply chain experts as negotiations continue to ensure any outcomes have the maximum impact on reducing friction.
