Labour minister: UK-EU trade deal could take another year to kick in
The UK’s trade deal with the European Union, set to ease food standards and align energy markets could still take another year to come into effect, a Labour minister has warned.
In a landmark post-Brexit deal, the UK and EU agreed a deal on food standards to slash red tape for British exporters while giving European authorities power over regulations.
But the UK minister for EU relations, Nick Thomas-Symonds, has suggested that it could be months before fruit and vegetable traders reap the benefits of the deal.
Thomas-Symonds said “full negotiations” on the legal text of the Sanitary and Phytosanitary (SPS) agreement would take place in the autumn before concluding at the beginning of next year.
“The EU has its processes to go through,” he told City PM. “We will also have to take a bill through Parliament to implement the SPS agreement. But I’m determined people will feel the benefits as soon as possible.”
“I will welcome the debate with other parties. Reform and the Conservatives are seriously going to say they are going to undo this agreement.
“They will have to go and explain to traders that I’ve been talking to this morning why it is they want to increase red tape for them, because that is what they would be doing at the next election.”
Red tape on trade leaves firms hamstrung
Businesses up and down the UK have warned that the government risks moving too slowly on pushing ahead with food standards reforms, which the government predict could add £5bn a year to the UK economy.
M&S boss Stuart Machin said the deal “cannot come soon enough” as the supermarket had been forced to label food and vegetables with “Not For EU” stickers.
Former Prime Minister Rishi Sunak’s Windsor Framework said goods should not be moved over the Irish border from Northern Ireland.
Exporters have complained that friction in trade and labels on products were putting off consumers and making it harder for manufacturers to drive growth despite the SPS agreement being announced.
Industry leaders believe the deal will not come into place until 2027, with the government being urged to work through details carefully to protect British businessees and settle differences seen over the last few years.
Bosses also say SPS requirements at UK borders have not been consistent with the strict rules exporters have faced when sending products into Europe.
The British Chambers of Commerce’s head of trade policy William Bain said he was encouraged by Labour moves to make amendments to the Windsor Framework, reflecting the government’s intention to remove ‘not for EU’ labelling on products circulating in Northern Ireland.
“Negotiations on removing red tape for cross border trade in food and plant products, and on carbon charges are two key areas which can reduce business costs.
“The sooner we can reach agreement the quicker we can expand bilateral trade and reduce the bureaucracy and charges involved.”
Thomas-Symonds said the Labour government had “delivered at speed” to secure a “comprehensive package” that featured agreements on defence and law enforcement within 10 months of getting into Downing Street.
The Labour minister also said annual summits with the EU would be “milestones” for authorities to agree on new measures as he looked forward to implementing changes agreed in the first iteration of the summit.