Trade and Logistics Update June 2025
EU Trade Deal
DBT updated us on the next steps from the recent agreement between the UK and EU to reset our trade deal. Key points are
- · UK committed to align our food regulation in return for EU dropping sanitary and phytosanitary (SPS) border checks and certification
- · Defra currently assessing which UK regulation requires alignment. The process to implement that will take 12-18 months meaning current UK/EU food border checks remain in place until then
- · This change will also remove many of the requirements for retailers moving from Great Britain to Northern Ireland, although the EU is demanding full compliance with the Windsor Framework in the meantime
- · UK will also have access to EU food agencies and will be able to comment on new EU regulation. The extent of the participation and influence isn’t clear but will give BRC and members an opportunity to raise issues on EU law which will be adopted into UK law
- · The EU meeting also opened up discussion on other issues including business mobility and recognition of professional qualifications. DBT hope for future agreement
- · There was also discussion on greater regulatory co-operation. Although not agreed it means further discussion on how the UK could align on supply chain issues such as environmental regulation
- · DBT believe there are likely to be annual discussions on how the trade deal can be improved further, opening the opportunity for further discussion to reduce the burden in supply chains and retailing across borders
EU Support
- DBT has also set up an industry group on EU regulation of which we are a member. It met for the first time recently and the key points are
- · UK Government is increasing support for businesses operating in the EU and Northern Ireland, where EU environmental and product safety regulation applies
- · DBT has set up an industry group, including the BRC, to give visibility of emerging EU regulations and guidance to help compliance
- · The DBT group will focus on those EU issues with the biggest impact and have agreed to prioritise 6 current regulations – PPWR, EU Reach, GPSR, CBAM, CSRD and EUDR
- · This gives us the chance to raise your issues with Government for clarification and guidance, something which worked well in the run up to the introduction of GPSR in Northern Ireland
- · We have also asked the DBT group to consider other issues including EU Forced Labour regulations and the implementation of new energy efficiency labelling
- · Centrally, the Government also has a cross Whitehall group to consider all emerging EU regulation and we will be able to feed in through the DBT group
- · Defra is also setting up a group to work with industry to help implement alignment with the EU on food regulation which we will join
UK Trade Strategy
DBT shared the latest on the UK trade strategy
- · The strategy will be published imminently and will set out the Government’s approach to trade
- · Trade deals will be targeted to deliver the maximum impact for UK businesses. Both in terms of countries and type of deal, from specific agreements to complete Free Trade Agreements
- · Strategy will also push more efficient trading arrangements with an emphasis on digitilisation
- · Reflecting on recent events there will be a strengthening of trade defence policy
- · It will also confirm UK’s intent to take a progressive approach to ethical and environmental aspects of trade
India and US trade deals
DBT gave a quick update on current trade deals
- · Indian deal being scrutinised and confirmed by legal experts
- · Expect final legal documents for Indian deal to be signed in the Summer, but then will require Parliamentary approval, so likely to be in force from early 2026
- · US deal reliant on President signing
- · Detail of US deal still being agreed but hoping to conclude in a couple of weeks ahead of the tariff increases on 9 July
Disruption to Global Logistics
James Hookham, our partner at the Global Shippers Forum gave his regular update, the key points are
- · US tariffs are impacting global trade, particularly as far East exporters move product before the 9th July tariff increase
- · This means there is more pressure on Pacific trade with potential pressure on availability and cost of Atlantic carriers
- · US also introducing shipping taxes on Chinese built vessels begins this Autumn, increasing over 2 years. This could lead to shipping lines changing vessels with a knock on for Atlantic trade
- · Although there appears some progress with the Houthi rebels, shipping lines are still reluctant to use the Red Sea route due to high insurance costs. This is not likely to change in the coming months
- · James said their members were seeing increased concerns about surcharges being added by shipping lines. They are investigating further to see if it is worth involving regulators so if you have any evidence of this they would be interested
- · The shipping lines have now agreed their net zero commitment which will come into force in 2027 and is likely to increase costs due to changes in fuel
- · Plastic pellets are under increased surveillance, due to their link to recent pollution incidents following shipping collisions. If you or your supply chain use plastic pellets probably worth considering the impact of increased regulation and cost of transport