UK and EU agree draft deal to remove Brexit checks on food exports

3 min read
UK and EU agree draft deal to remove Brexit checks on food exports
PrimeXBT Editorial Team
Reviewed by PrimeXBT

The UK and EU have agreed a draft deal to remove post-Brexit checks on food and agriculture exports. EU nations will consider the text on Wednesday, ahead of the UK-EU summit later this month.

The UK and EU have agreed a draft deal on removing post-Brexit checks from food and agriculture exports. The BBC understands the 200-page draft text for the "SPS" (sanitary and phytosanitary) agreement has been circulated to EU nations in Brussels for a meeting on Wednesday.

Similar texts for deals on emissions trading and a youth travel and work scheme have also been circulated, alongside a 15-page draft joint statement for UK and EU leaders.

What the food deal removes

The BBC calls the food deal the most significant part of the so-called Brexit reset agreed so far. It should remove the need for £200 Export Health Certificates, £25 Phytosanitary certificates, inspector fees, organic certificates, some port fees and sampling fees.

UK exports of fresh sausages, burgers, shellfish from domestic waters and seed potatoes to the EU will also be able to resume. The government claims the UK economy will eventually see £5.1bn worth of annual benefits.

In return, the UK will commit to observing and adapting to existing EU rules on plant, animal and food trade standards, a process called "dynamic alignment". A European Partnerships Bill will provide a legal mechanism for applying new EU rules.

Business backs the deal, critics object

Supermarkets and farmers' representatives have backed the food trade plans, but some pro-Brexit campaigners have criticised the reapplication of EU rules. William Bain, head of trade policy at the British Chamber of Commerce (BCC), told the BBC's Today programme that business overall thought following common rules was a "price is worth paying".

Bain said Export Health Certificates can add thousands of pounds of costs to each truck, on top of port and border delays. Separately, a BCC survey found that 56% of exporting businesses wanted EU customs paperwork and delays removed, rising to 58% of manufacturers.

What comes next

EU ambassadors will discuss the draft agreements at a Coreper meeting on Wednesday. Key details on the planned numbers in a Youth Experience Scheme are due to be finalised at a political level in the coming days, while a discount on full foreign student fees for EU students is likely to be pushed to next year.

The prime minister has said he wants to use this month's summit to launch a conversation on a longer-term path for the UK-EU relationship, including rejoining the bloc.

Source: BBC News

Trading involves risk.

Most traded markets

XAU / USD
-0.79% 3,915.20
CRUDE
+0.93% 98.191
BTC / USD
-0.54% 77,431.3
EUR / USD
-0.08% 1.11784
USTEC
+0.11% 28,105.30
COIN
+0.95% 138.07
View all markets

Author

PrimeXBT
Our Editorial Team consists of leading experts with a proven record in the fields of trading, cryptocurrencies, blockchain and finance. We thoroughly research the sources of information in order to provide readers with quality content that serves edu...
Read author’s articles
Alert Triangle Risk Disclaimer
Disclaimer: Some past publications may be outdated. We recommend following our news to stay up to date with the latest information. For any questions, feel free to contact our support team via the chat below.
The content provided here is for informational purposes only. It is not intended as personal investment advice and does not constitute a solicitation or invitation to engage in any financial transactions, investments, or related activities. Past performance is not a reliable indicator of future results.
The financial products offered by the Company are complex and come with a high risk of losing money rapidly due to leverage. These products may not be suitable for all investors. Before engaging, you should consider whether you understand how these leveraged products work and whether you can afford the high risk of losing your money.
The Company does not accept clients from the Restricted Jurisdictions as indicated in our website/ T&C. Some services or products may not be available in your jurisdiction.
The applicable legal entity and its respective products and services depend on the client’s country of residence and the entity with which the client has established a contractual relationship during registration.

Today in markets

Browse World News

Register Now

Trading involves risk

Get started in minutes

Our clients love how fast and simple our sign-up is. It takes just a few minutes to get started!

Get Started Get Started
Get started in minutes

Need Help?

Risk Warning:
Trading in leveraged products carries a high level of risk and may not be suitable for all investors.