UK and EU Move Towards Agricultural Agreement Post-Brexit

The United Kingdom and the European Union are nearing the finalization of a sanitary and phytosanitary (SPS) agreement aimed at reducing trade barriers that emerged following Brexit. This agreement is expected to significantly impact the export of Scottish seafood, particularly langoustines and oysters, by eliminating physical checks on farm produce and the requirement for costly veterinary certificates, which are priced at £200 each. William Bain, head of trade policy at the British Chambers of Commerce, emphasized that the SPS deal could facilitate the resumption of exports that had previously been hindered by border checks, which reduced the shelf life of seafood products.

The Guardian

Despite these advancements, the SPS agreement will not completely eliminate all Brexit-related paperwork. British exporters will still be required to complete customs, VAT, and safety and security declarations. The Labour Party has proposed a plan to further reduce trade barriers by adopting a policy of "dynamic alignment," which would involve adhering to future EU regulations concerning agricultural products.

The Guardian

During discussions in the House of Lords, Shanker Singham, chair of the Growth Commission, highlighted that the UK could have explored alternative arrangements, such as mutual recognition of food standards, similar to the system in place between New Zealand and Australia. This approach would allow for a more flexible trade relationship without the need for dynamic alignment with EU regulations. Singham noted that the UK holds a significant position in trade negotiations, as it accounts for approximately 23% of the EU's global agrifood exports, while the reverse is not true.

The Guardian

Critics, including Singham, argue that the UK government has not fully leveraged its advantageous position in negotiations. He stated, “If you don’t ask, you don’t get,” cautioning against relinquishing regulatory authority without adequate returns. Sam Lowe, head of trade and market access practice at Flint Global, pointed out that while dynamic alignment could eliminate physical inspections, it also requires the EU to recognize the UK's regulatory framework, which may not be reciprocated.

The Guardian

The discussions surrounding the SPS agreement have revealed differing opinions on the best path forward for UK-EU agricultural trade. While some experts advocate for dynamic alignment to ease trade, others suggest that a mutual recognition framework could provide greater flexibility and autonomy for the UK.

The Guardian

There is a divergence in perspectives regarding the effectiveness of dynamic alignment versus mutual recognition. While proponents of dynamic alignment argue for its benefits in reducing inspections, critics highlight the potential risks of ceding regulatory authority. The ongoing negotiations will determine the ultimate structure of the UK-EU agricultural trade relationship.

The Guardian

• “If you don’t ask, you don’t get,” — Shanker Singham, Chair of the Growth Commission

The Guardian

• “What we’re actually asking for is the EU to recognise our dynamic alignment, and in doing so, treat our exporters better,” — Sam Lowe, Head of Trade and Market Access Practice at Flint Global

The Guardian