Exports of British food to the EU have declined by nearly £3 billion annually since Brexit, according to a trade think tank, with new physical and documentary checks at the border complicating trade.
A report by the Centre for Inclusive Trade Policy (CITP) found that UK food and agricultural exports to the EU have dropped by over 16% on average in the three years since Britain left the single market, compared to the three years before the exit. This amounts to £2.8 billion less in exports to the EU each year.
While the decline coincided with events like the Covid pandemic and Russia’s invasion of Ukraine, the report noted that trade flows between the UK and EU, particularly British exports, have not returned to previous levels.
Campaigners and industry groups have urged Labour leader Keir Starmer to push forward with the party’s promise to secure a veterinary deal, or SPS agreement, with the EU to reduce trade barriers.
Following Brexit on 1 January 2021, the UK became a “third country,” prompting the EU to introduce new border checks for agri-food products from Britain, including health certificates and physical inspections.
After several delays, the UK government introduced reciprocal measures for plant and animal imports in January, with physical checks beginning in April. These measures were designed to prevent the spread of plant and animal diseases into the UK.
The CITP report highlighted that many industry groups view the new certification and regulatory measures as major obstacles to growth, resulting in significant additional costs. The Guardian reported in August that meat and dairy exporters spent more than £205 million on export health certificates since Brexit.
The Labour government has promised to align more closely with the EU, particularly through a veterinary agreement to reduce unnecessary border checks and trade costs. However, there has been little progress on this front, and experts warn that these negotiations could take years.
The report also noted that since Brexit, the EU and UK have diverged in several areas, with the EU imposing stricter standards on pesticides, veterinary drugs, and packaging, while the UK has tightened rules on animal welfare. The CITP argues that aligning regulatory requirements is key to facilitating the free movement of goods, but the divergence has created more barriers at the border, damaging trade.
Emma Knaggs, deputy CEO of European Movement UK, said: “The government needs to negotiate a new SPS agreement with the EU that reduces the need for animal health checks and veterinary involvement, smooths trade across the Channel, and crucially cuts the post-Brexit red tape for UK exporters. Brexit has raised costs, created unnecessary bureaucracy, and harmed trade.”
A government spokesperson stated: “We have been clear that a veterinary or SPS agreement could boost trade and deliver significant benefits for both sides. Final arrangements are subject to negotiations, but the UK and EU maintain similarly high standards.”
