Navigating Post-Brexit Trade: The Case for a UK-EU Veterinary Deal

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In the wake of Brexit, the landscape of UK-EU trade has undergone significant changes, particularly impacting the export of food and agricultural products. A recent report by the Centre of Inclusive Trade Policy (CITP) highlights a worrying trend: a more than 16% decline in exports to the EU over the past three years compared to the period before the UK exited the single market. This article delves into the findings of the report, the external factors at play, and the urgent call for a veterinary deal, known as an SPS agreement, to alleviate trade barriers.

The Current State of UK-EU Trade

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A Decline in Exports

The CITP report underscores a significant drop in UK food and agricultural exports to the EU, with no signs of a rebound to pre-Brexit levels. This decline coincides with global disruptions such as the Covid pandemic and geopolitical tensions following Russia’s invasion of Ukraine. These events have undeniably influenced trade flows, yet the persistent stagnation suggests deeper structural issues stemming from Brexit.

External Challenges

• Covid-19 Pandemic: Disrupted supply chains and altered consumer demand patterns across the globe.
• Geopolitical Tensions: Conflict has added uncertainty, affecting international trade dynamics.

Despite these challenges, the core issue remains. The increased trade barriers between the UK and EU are still holding back UK trade, particularly for animal and plant products, due to the lack of a veterinary agreement.

The Need for a Veterinary Deal

Understanding the SPS Agreement

An SPS (Sanitary and Phytosanitary) agreement would align standards for veterinary checks, reducing the friction at borders for animal and plant product exports. This could potentially restore trade flows by removing non-tariff barriers that have been exacerbated post-Brexit.

Specific Ideas for Negotiation

1. Leverage Precedents: Study successful SPS agreements from other countries such as New Zealand and Canada, which have managed to maintain high standards while facilitating smoother trade.
2. Stakeholder Engagement: Involve key industry stakeholders in the negotiation process to ensure the agreement reflects the practical needs of exporters and farmers.
3. Phased Implementation: Propose a phased implementation of the agreement to gradually reduce barriers and allow businesses to adjust, minimising disruption.

Balancing Trade and Welfare

Maintaining Animal Welfare Standards

One of the primary concerns in negotiating an SPS agreement is ensuring that the UK’s stringent animal welfare standards are not compromised. The UK has long been a leader in this area, and any trade deal must reflect these values.

The Economic Argument

Revitalising exports through a veterinary deal is not merely about easing trade; it’s about safeguarding the livelihoods of farmers and the agricultural economy. By removing unnecessary barriers, the UK can bolster its competitive edge in the EU market.

Conclusion

The CITP report serves as a stark reminder of the trade challenges the UK faces post-Brexit. While external factors like the pandemic and geopolitical tensions have played a role, the core issue lies in the regulatory divergence between the UK and EU. An SPS agreement offers a pathway to mitigate these barriers, ensuring that UK exports regain their momentum while upholding the nation's high standards of animal welfare. As policymakers deliberate, it is crucial that they heed the call of campaigners and industry leaders to prioritise this essential trade remedy.