Recommendation 14

HM Government Accepted

The UK Government is working with the EU to advance the package agreed at the May UK-EU summit and remains committed to a broad and constructive relationship with the EU. A central element of this work is the negotiation of a Sanitary and Phytosanitary (SPS) Agreement, which will make agri-food trade with our largest market cheaper and easier, cutting costs and reducing administrative burdens for British producers and retailers, while helping to ease pressure on food inflation. The EU accounts for the majority of the UK’s agri-food trade. In 2024, 57% (£14.1 billion) of UK agri-food exports were to EU countries, while 72% (£45.5 billion) of imports came from the EU. In the long term, an SPS agreement could add up to £5.1 billion annually to the UK economy. The removal of export health certificates will save businesses up to £200 per consignment, while eliminating phytosanitary certificates will save around £25 each. The removal of Certificates of Inspection for organic products will save over £130 per consignment. Routine SPS border checks will also be eliminated, reducing delays and paperwork so that fresh produce reaches supermarket shelves more quickly and at lower cost. Negotiations have now commenced. While we are unable to provide a running commentary, our objective is to conclude discussions and have legislative arrangements in place no later than 2027, subject to agreement with the EU.