UK Government promises to finalize a new EU agri-food agreement within 18 months

UK government ministers have pledged to eliminate costs relating to licenses to export food and agricultural products to the European Union.

Nick Thomas-Symonds, the Cabinet Office minister in charge of EU negotiations, pledged to phase out these costs as part of a new deal to be thrashed out with the EU over the next 18 months and slated to be completed by 2027. 

He spoke at a London event and highlighted how small and large F&B companies “are crying out for change for practical help to bring down bills so they make goods cheaper for the public.”

He noted that he has spoken to hauliers who face being stuck in queues, farmers who have to deal with endless forms, and manufacturers who “pay more just to stand still.” 

Aligning standards

He also flagged how red tape has created a competitive disadvantage between smaller firms and larger operators, and how entering into a new food and drink deal means aligning standards on food and agriculture.

“For farmers, agri-food exports will become cheaper and easier. For hauliers, they will spend less time sitting in their cabs in long queues. For consumers, prices will come down.” 

Department for Environment, Food and Rural Affairs (Defra) data released earlier this week shows that Britain-based companies spent up to £65 million (US$87.6 million) last year on licences to export food and agricultural products to the EU. 

Figures show that the government issued 328,727 licences last year, each costing between £113 (US$152) and £200 (US$269).

Ministers note that a new deal with the EU is crucial to lower supermarket prices and ease inflationary pressures. 

According to the latest Consumer Price Index data from the Office for National Statistics, food inflation in the UK rose to 4.9% in July, up from 4.5% in June.