Don’t rush into SPS deal, industry leaders warn government

Farm leaders have warned the government not to rush into a sanitary and phytosanitary (SPS) agreement with the EU, arguing that securing the “right deal” is more important than meeting political timelines.

Giving evidence to the House of Lords European Affairs Committee on Tuesday 19 May, NFU president Tom Bradshaw said the UK must avoid repeating mistakes made during the Australia trade negotiations, which he said had “ended disastrously” for parts of British agriculture.

Mr Bradshaw said ministers should resist pressure to secure a deal quickly if key safeguards for UK farming were not in place.

See also: Government rejects Efra call for SPS transition period

“I understand the political will to move quickly, but that should not be at all costs,” he said. “We’ve got to make sure the deal is the right deal.”

Regulatory concerns

Achieving an SPS agreement with the EU is a key government objective, to reduce trade friction for UK exports. The aim is to secure a deal by the time of the next UK-EU Summit, supposedly taking place “this summer”.

Mr Bradshaw told peers that regulatory autonomy was crucial for agriculture, particularly in areas such as gene editing, plant protection products and bovine TB vaccine development.

“We must not let the EU put the handbrake on us,” he said.

Farmers were concerned about the UK becoming too closely aligned with EU rules, with insufficient flexibility or transition arrangements, he added.

The NFU president also stressed the need for an arbitration mechanism between the UK and the EU and argued that parliament must retain the right to refuse unacceptable EU-derived rules.

A “sovereign backstop” within any agreement was essential, he said, because “there will be areas where there’s disagreement in the future”.

Financial burden

British Meat Processors Association chief executive John Powell was more upbeat about the prospects of an SPS agreement, however, saying it was “vitally important” to reverse some of the 15-30% drop in sheep, beef and pork exports to the EU since Brexit.

The cost of dealing with additional red tape and checks to ship British food had put a significant financial burden on the meat industry.

Mr Powell said 52,500 export health certificates had been issued this year alone, requiring about 105,000 certifier hours and costing more than £10.5m.

Citing consultants Andersons, he added that each export consignment was estimated to cost between £2,000 and £3,000 in additional administration and certification expenses, equating to about £50m annually over the past six years.

“The benefits to us of concluding an agreement far outweigh any challenges that we may need to confront post-agreement of implementation and delivery,” he said.

Influence

Both men emphasised the importance of maintaining strong UK representation in Brussels as future standards and regulation are developed.

“We need to make sure there is a process that gives us the opportunity to engage as early as possible, and that industry also has a say in feeding government with good advice on what’s technically possible to deliver in terms of that new legislation,” said Mr Powell.

Such involvement was “pivotal”, said Mr Bradshaw, “otherwise we will just be a silent voice and have to take whatever comes our way”.