Resetting EU trade: The case for SPS alignment to boost competitiveness
A year after advocating for the UK to maintain alignment with EU SPS (Sanitary and Phytosanitary) standards, the landscape has shifted with a new government aiming to reset post-Brexit relations. While rejoining the Single Market or Customs Union remains off the table, and even modest concessions like Erasmus participation seem ruled out, the urgency for action is more apparent than ever. The UK meat processing industry, heavily reliant on EU trade, is grappling with mounting costs and logistical complexities, which are undermining competitiveness and threatening business viability.
In his latest article, BMPA's Trade Policy Advisor, Peter Hardwick calculates how post-Brexit trade arrangements are costing exporters significantly, with additional expenses ranging from £1500 to £1600 per truckload which is akin to a 2% tariff and close to typical industry profit margins. These costs are compounded by extensive administrative burdens, with companies employing large teams just to navigate EU compliance. Without alignment, these inefficiencies persist, adding no value and eroding competitiveness. A revised deal to reduce these barriers is critical to cut costs, boost trade, and align with the government’s growth agenda.