Article

EU Regulatory Alignment

Divergence since Brexit has caused problems for those operating in the EU and Northern Ireland and maintaining consistent, efficient supply chains. The Government is reducing this by aligning on food regulation which will also reduce border checks and considering whether to align product safety and environmental regulation with the EU. We are working with the Government to ensure your interests are represented and keep you up to date.

20 August 20255 Minute Read

Andrew OpieDirector of Food and Sustainability | BRCAndrew.Opie@brc.org.uk

EU Regulatory Alignment

Background

Differences in regulation between the UK and EU can have a significant impact on retailers. Post Brexit, that impact could grow as each side changes its legislation. Obviously, for those with stores in both areas need to ensure compliance with two regulatory regimes but all retailers are affected by impacts on supply chain costs. Many of our supply chains are European based, and differences in how regulations affect sourcing, manufactured and labelling between us and the EU increase costs by reducing the efficiency of large, homogenous production.

These differences also apply within the UK. As part of the Brexit deal, Northern Ireland remains subject to EU legislation in key areas such as product safety and environment, meaning UK only retailers face diverging regulatory regimes.

What is the Government Doing About This?

The Government is conscious of the impact of regulatory divergence on retailers, manufacturers and consumers and is aiming to reduce it in two ways. Firstly, it agreed in May this year with the EU to align UK food regulation in return for a significant reduction in food safety checks (SPS) at the border as part of a revision of the Brexit deal. Secondly, it is considering whether it is worthwhile aligning product safety and environmental legislation with the EU.

How will the alignment of food regulation be delivered?

Firstly, the Government needs to agree with the EU the scope of regulation which needs to be aligned. The deal with the EU allows the UK to ‘carve out’ some areas of regulation, for example, the UK wants to retain its more progressive approach to new food technology such as precision breeding and novel food authorisation. The scope of alignment is likely to be agreed by the end of the year.

Next, the UK needs to show it has aligned its relevant legislation with the EU. The UK Government has mapped out where the differences are, what needs to change and the impact of those changes. It runs to several hundred pieces of legislation, all of which will need to be changed by Parliament.

It is talking to us and other organisations to understand the practical impact of the changes and how quickly they can be implemented by retailers and their supply chains. Only when the EU is satisfied with compliance will it relax the SPS checks on imports from the UK. The whole process is expected to take several years.

What about other EU legislation?

The deal with the EU only required the UK to align with its food regulation. However, the UK Government is considering whether it is aligning in other areas, including product safety and environment to ensure efficiencies in supply chains and reduce the cost for operating two systems in the UK; one for GB and one for Northern Ireland.

The Department for Business and Trade (DBT) is working with us and other industry representatives to prioritise EU legislation to identify where there are benefits in aligning. These cover environmental issues such as CBAM and deforestation and product safety, such as REACH and GPSR. Once priorities are agreed Government will consider when and how to make the changes to our legislation.

We have also asked DBT to monitor new legislation as it is developed in the EU. This should give members more visibility of changes, particularly for those which will apply in Northern Ireland.

How can members keep abreast of changes?

Through our Food, Product Safety and Trade Communities we will update members on how legislation is changing and timescale for implementing changes in your businesses and supply chains. We will also ensure Defra and DBT officials are regular attendees at future Community meetings and calls to answer your questions.