As reports emerge that the UK and EU have agreed a draft deal on removing post-Brexit checks from food and agriculture exports, both Logistics UK and the RHA welcomed the move but said it needs to go further.
The 200-page draft sanitary and phytosanitary (SPS) agreement has been circulated to EU nations in Brussels for consideration at a meeting on Wednesday.
If it is signed off then exports to the EU of food stuffs such as fresh sausages, burgers, shellfish from domestic waters and seed potatoes would be able to resume.
It should also remove the need for £200 Export Health Certificates for food products and the £25 Phytosanitary certificates, which show that plants or plant products are free from pests and diseases. In addition inspector fees, organic certificates, some port fees and other checks for exports and imports to and from the EU could be removed.
However sources say the sanitary and phytosanitary (SPS) deal will not be implemented until the first quarter of 2028.
Commenting on the deal, Logistics UK chief executive Ben Fletcher said a comprehensive SPS deal would be a significant step in reducing trade friction and boosting growth.
“Further progress towards concluding an SPS deal with the EU is hugely positive news for British businesses, including the logistics operators that drive economic growth by keeping trade moving,” he said, adding that with the EU accounting for around 40% of UK exports the deal could add £5.1bn a year to the UK economy.
“Our own analysis shows it could reduce export costs by up to 8% on affected agri-food goods and save between £150 and £250 per consignment.
“This is particularly significant for groupage operators, which incur charges on every consignment within the mixed loads they carry.
“A finalised UK-EU SPS agreement would also significantly reduce checks, paperwork and delays on agri-food and plant products movements between Great Britain and Northern Ireland, making supply chains more efficient and lowering costs for logistics operators, retailers and manufacturers,” Fletcher continued.
“This will make it easier for new suppliers and innovative products to generate new business in the EU market, which is vital for growth.
Fletcher also called for further moves to reduce Brexit barriers to trade.
“With every £1 of GVA generated directly by the logistics sector supporting a further £1.04 of economic activity across the economy, improving the UK’s trading relationship with its largest market is an opportunity that will benefit businesses, consumers and growth nationwide.”
The RHA welcomed the news but echoed Logistics UK’s call for the further dismantling of trade obstacles.
Richard Smith, RHA chief executive, said: “We strongly welcome the work undertaken by the UK Government and European Commission to introduce a new Sanitary and Phytosanitary (SPS) Agreement from 2027.
“However, additional measures are needed to reduce unnecessary administration and unpredictable border delays.
“This all affects competitiveness and investment decisions, and these pressures don’t stop with transport operators.
“Every unnecessary delay, additional cost or lost commercial opportunity has a wider economic consequence.
“Making trade easier is about creating the conditions for businesses across the economy to succeed.”
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