The Revised UK/EU Trade Deal
What was agreed in the Deal?
The biggest change for retailers will be the removal of sanitary and phytosanitary (SPS) checks on food products between the UK and EU and between Great Britain and Northern Ireland. Currently food requires certification by authorised experts, such as vets, and is subject to possible inspection and checks at the border. Food moving from GB to NI is also subject to checks, albeit simpler under the retail scheme, and additional requirements such as the Not for EU label. Removing SPS checks will considerably reduce the burden on retailers both exporting and importing food.
When will these changes come into force?
Although there was a lot of publicity when Keir Starmer and Ursula von der Leyen signed the deal on the 19th May we wont see the benefits of it for some time. Firstly, the deal needs to be agreed in detail and confirmed by both sides. For example, whilst the UK has agreed to align its food legislation with the EU in return for the removal of SPS checks, it has been clear it wants to retain ownership of some areas of food law, such as gene edited crops. Secondly, the EU has been clear the UK must ensure compliance with the original deal. The biggest issue for members will be compliance with the Windsor Framework, the agreement covering food moved from GB to NI. Thirdly, there are other elements in the deal such as commitments on defence and fishing which need to be finalised, the whole deal has to be agreed to unlock individual benefits. Finally, alignment of UK food legislation is not straightforward and will take time to deliver.
Detailed negotiations are likely to commence in the early Autumn and could last until the end of the year. The deal then needs to be agreed by the UK and EU. The EU will also expect to see legislation in place on food to ensure there is alignment. UK Government hasn’t confirmed a target date for final implementation of the deal but it is likely to be no earlier than 2027.
What is the problem in aligning food regulation?
Since Brexit both the UK and EU have made changes to regulations on how food is produced. The UK will need to ensure our regulation aligns with the EU, repealing some of the regulations we have introduced and adopting EU changes we have not. The UK Government estimates we have introduced between 2-300 pieces of secondary legislation, all of which will need to be amended or removed, together with new legislation to adopt EU changes. These changes require both officials and Parliamentary time, and the process will take years to deliver.
Alignment will also mean members and their supply chains adapting to meet the new requirements. Although some members will have adapted to the EU changes for exports to European stores or Northern Ireland, these changes will apply to every retailer, even those only operating in GB.
What about regulation going forward?
With very minor exceptions, the UK will, in future, simply adopt EU regulations into UK law. The UK will have the opportunity to comment on new regulation as it is consulted upon but we will not have a vote on its final agreement.
What does this mean for members?
Firstly, those with stores in Northern Ireland will know the EU is calling for increased compliance with the Windsor Framework. It has told the UK Government there cant be progress on the new deal to remove SPS checks without this. However, compliance is difficult, not least because some brands have chosen not to label products with Not for EU ahead of a July deadline, potentially restricting availability.
Secondly, members will need to ensure their businesses and supply chains adapt to new regulations as the UK aligns with the EU. As covered above this is a complex process covering multiple, detailed areas of regulation. Members will need to be alert to the practical implications of these changes and ensure they implement them.
Thirdly, for those who are exporting to the EU or using the Windsor Framework they and their supply chains will need to continue to follow the current SPS rules and checks.
What is the BRC doing to help?
We have already spoken to Defra and FSA about the changes to regulation. They have agreed to work with us to ensure you have maximum visibility of the changes and how to practically implement them. Working with you we will also flag those changes which might require longer time to implement and encourage them to prioritise accordingly.
We will share the detail of this work with your experts in our food working groups, including labelling and microbiological, so make sure you are connected to get the best support.
