UK-EU Agriculture Agreement to Reduce Brexit Red Tape for Scottish Shellfish Exports
A new sanitary and phytosanitary (SPS) agreement between the UK and the European Union is set to modestly ease Brexit trade barriers, with peers in the House of Lords hearing that it could particularly benefit sales of Scottish langoustines and molluscs. However, the deal will not erase all paperwork, as British exporters will still face customs and VAT declarations.
Impact on Scottish Seafood Trade
Before Brexit, freshly caught Scottish langoustines and oysters could be delivered to Paris diners within a single day, but border checks have since reduced shelf life and halted many exports. William Bain, head of trade policy at the British Chambers of Commerce, highlighted that the SPS agreement might reopen this trade by ending physical checks and veterinary certificates, which cost £200 each. It could also remove the requirement for "Not for EU" labels, a significant issue for wholesalers.
Limitations and Alternative Approaches
Despite these benefits, the agreement will not eliminate all bureaucratic hurdles. British businesses must still complete safety and security declarations. Labour's proposal involves dynamic alignment with EU farm produce rules, applying future regulations automatically. In contrast, Shanker Singham of the Growth Commission advocated for mutual recognition of standards, similar to agreements between New Zealand and the UK, which would avoid ceding regulatory authority.
Trade Imbalances and Negotiation Leverage
Singham noted a trade imbalance, with 23% of the EU's global agrifood exports going to the UK, giving the UK significant leverage in talks. He criticised the government for not fully utilising this advantage, suggesting that mutual recognition could offer a better path than dynamic alignment. Sam Lowe of Flint Global argued that dynamic alignment would nearly eliminate physical inspections, a benefit not afforded by mutual recognition deals.
The peers were informed that the UK has delayed implementing border controls compared to the EU, leading to random inspections on fresh food and affecting up to 20,000 British exporters. The ongoing negotiations aim to accept 76 existing EU laws in the farm food sector, with the final agreement expected to have a modest but meaningful impact on the UK economy.
