Industry welcomes landmark UK/EU border agreement

Transport trade associations have offered a qualified welcome to this month’s announcement of a new agreement between the UK and the European Union, including on sanitary and phytosanitary (SPS) checks on plant and animal products crossing the border.

The agreement, which was announced by the prime minister Keir Starmer on 19 May, is hoped to reduce supermarket food prices, cut red tape including for the logistics sector, and boost the British economy by almost £9 billion by 2040.

The new SPS agreement will reduce the administrative burden around the import and export of food and drink, says the government, which have led to lengthy lorry queues at ports. The deal, which is not time-limited, will see some routine checks on animal and plant products removed completely, thereby promoting the free flow of goods, including between Great Britain and Northern Ireland.

Logistics UK said the deal had the potential to strengthen the UK’s internal market as well as boosting trade with the EU, as a result of reduced bureaucracy and border friction.

It said the changes would be welcomed by the sector “in principle”, though full judgement would be reserved until the full detail could be assessed.

“The new deal has the potential to drive growth throughout the UK by boosting GB agrifood trade to NI, and between GB and the EU, through reduced bureaucracy, costs and border delays,” said Nichola Mallon, head of trade and devolved policy at Logistics UK.

“While the technical details have yet to be agreed, our members will welcome the deal in principle.

“It is now vital that the technical discussions and implementation, shaped by the input of businesses which have the expertise, are completed as a matter of urgency, so that UK traders and logistics businesses can realise the benefits of trading under the revised terms.”

She added: “The current requirement for SPS checks on plant and animal products moving between GB and EU and vice versa is adding time, bureaucracy and cost to UK traders and logistics operators.

“It is a burden that is hard to manage for SMEs and groupage operators in particular, as they must pay fees on each of the smaller shipments that they combine together.

“Since the UK’s decision to leave the EU was announced, Logistics UK has been consistent in calling for a comprehensive SPS Agreement between both economies.

“We have been making the case robustly to government and we are delighted at this commitment to a joint agreement that should smooth the passage of agrifood and plant products/goods into and out of the country while protecting the UK’s biosecurity.”

But she warned that the sector still faced challenges as a result of the so-called ’90/180′ rule which limits the time British citizens can spend within the Schengen Area, and the restrictions this places on those servicing touring artists in particular.

“Logistics UK will continue to urge the UK government and EU to be ambitious in this ongoing reset of relations and in the upcoming Review of the Trade and Cooperation Agreement,” Ms Mallon said.

“As always, our industry stands ready to provide real-world advice and expertise to governments on both sides of the Channel to ease the passage of goods to the end user.”

The Road Haulage Association (RHA) said that the new common SPS area was welcome news for the freight sector and would reduce the costs and delays faced by operators involved with cross-border goods movements.

“This change will see the removal of certain checks on food and drink exports, including GB-NI, in both directions without the certificates or controls that are currently required which have reduced trade flows and freight movements,” it said.

“For businesses in Northern Ireland, today’s announcement should facilitate smoother trade between Great Britain and NI. We will be engaging with businesses across the country in the coming weeks to understand the full impact.

“However, our concerns over the operation of Windsor Framework regulations, and the lack of clarity and real-time communication remain. We urge ministers to recognise the significant ongoing impact on the Northern Ireland supply chain.”

Whilst the EU remains the UK’s largest trading partner, the RHA said, there had been a significant drop in exports in recent years which had negatively impacted economic growth.

“Less red tape and smoother, simpler border checks will hopefully address some of this drop in trade, although concerns remain about the number of drivers who can transport these goods,” it said.

“British international hauliers and coach operators working in Europe are currently restricted in their operations by the 90/180-day rule and we welcome further UK-EU talks on this issue.”