As the EU/UK Summit approaches on 19 May, the focus on improving trade relations between the UK and the EU becomes increasingly urgent. Nichola Mallon, Logistics UK’s Head of Trade and Devolved Policy, underscores the critical need for the government to minimize border friction in order to meet its growth objectives. The stakes are high; the EU remains the UK’s largest trading partner, and any barriers that inhibit the free flow of goods threaten not only commercial interests but also long-term economic recovery in the post-Brexit landscape.
Mallon expresses the frustration of businesses that rely on the movement of goods, highlighting how current regulations around Sanitary and PhytoSanitary (SPS) Checks are dramatically increasing time, bureaucracy, and costs for traders. Many in the industry, particularly SMEs and groupage operators, are disproportionately affected by these complexities. The necessity of inspections on both exported and imported products—particularly those of animal and plant origin—has created significant delays in the supply chain, directly impacting consumers.
Since the Brexit referendum, there has been an ongoing call for a comprehensive SPS agreement between the UK and the EU to streamline these inspections, enhancing both biosecurity and commercial efficiency. Such an agreement would relieve many concerns related to delays, ensuring that businesses can operate more effectively and that essential goods continue to reach consumers without unnecessary interruptions.
Compounding the issue, UK plant and food traders have taken matters into their own hands by establishing private control points for inspections, as seen in Kent’s Provender wholesale nursery. This initiative aims to alleviate the burdensome delays caused by reliance on state-run facilities. These efforts highlight a growing sentiment within the industry that patience with government processes is wearing thin. The slow rollout of a trusted trader programme has only intensified frustrations, with some EU exporters halting shipments to the UK due to the increased costs associated with these compliance hurdles.
According to the government’s Border Target Operating Model (BTOM), which outlines new approaches for importing goods into Great Britain, there is a phased plan for implementing risk-based sanitary and phytosanitary checks starting from January 2024. This model aims to align physical checks with the perceived risk of goods, which could alleviate some complexities, though traders remain sceptical about the government’s ability to deliver these efficiencies effectively. The BTOM represents a hopeful step towards reducing the bureaucratic burden; however, its success will depend on effective implementation and support from both local authorities and industry stakeholders.
Despite the broader ambitions of the EU-UK Trade and Cooperation Agreement (TCA)—which was designed to simplify trade between the two regions—realities have proven otherwise. Recent data indicates that EU food and drink exports to the UK plummeted by 20% in 2023, driven by customs delays and increased paperwork. The Centre for European Reform estimates that customs barriers are costing traders an additional €10 billion annually. This administrative burden clearly underscores the pressing need for reforms that can bolster the efficiency of supply chains.
The repercussions of labour shortages due to the end of free movement following Brexit have also been felt acutely. These challenges have resulted in significant delays across numerous sectors, including transport and food production, exacerbating the existing strains on the supply chain. Logistics UK contends that investment in border operations is crucial for the nation’s trade and economic prospects. The call for a Single Trade Window (STW) reflects a desire for a coherent, streamlined border system that minimises bureaucratic obstacles for businesses.
As negotiations progress and the reality of post-Brexit trade relationships continue to unfold, there is a clear signal from the logistics industry: the government must act decisively to reduce friction at the borders. Only through collaborative efforts between industry and government can the UK hope to restore its reputation as a reliable trading partner and support its economic ambitions moving forward. The dialogue at the upcoming summit will be pivotal in shaping the future of UK-EU trade relations, and immediate, pragmatic solutions are needed to navigate the complexities posed by a changing regulatory landscape.
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Source: Noah Wire Services
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