The UK Government has set 2027 as the deadline for reaching a new food and drink trade agreement with the European Union, with ministers stating it is necessary to lower supermarket prices and ease inflationary pressures.
Brexit Reset Minister Nick Thomas-Symonds confirmed the plan in a speech, outlining the Government's ambition to finalise the agrifood agreement within 18 months. The announcement follows headline terms agreed in May between Prime Minister Sir Keir Starmer and European Commission President Ursula von der Leyen.
Thomas-Symonds said the UK would align with EU rules for food and drink as part of a strategy to support growth, protect businesses, and reduce prices. He argued the move was "sovereignty, exercised in the national interest". The Department for Environment, Food and Rural Affairs also released new research detailing the costs faced by UK food and drink exporters to the EU, adding weight to the case for regulatory alignment.
Inflation and trade barriers
Inflation is currently at 3.8% and forecast to rise to 4% in September before easing. Food inflation reached 4.2% in August, the fastest rate in 18 months, according to the British Retail Consortium.
Morrisons' chief executive Rami Baitiéh said in May that a comprehensive post-Brexit deal would benefit consumers. "Sweeping away trade barriers with the EU will remove cost, complexity, and delay in food imports from the continent," he told the BBC. Thomas-Symonds noted that small and medium-sized firms are at a disadvantage compared to larger companies in managing post-Brexit bureaucracy. The Government has also cancelled upcoming border checks on EU fruit, vegetables, and meat in anticipation of the agreement.
Criticism over progress
Despite the timeline, the Government has faced criticism for slow progress. Liberal Democrat Europe spokesman James MacCleary said the UK should seek a full customs union with the EU to "transform our economic relationship with Europe". He added: "The Conservatives' botched Brexit deal has held back our economy for too long, and to announce that in the next 18 months things will only get slightly better simply won't wash."
Thomas-Symonds rejected opposition from Reform's Nigel Farage, warning that reversing the deal would harm UK businesses and consumers. The Government intends to introduce new legislation in the coming months to align UK regulations with EU standards, to secure voter support for the agreement before the next general election, expected in 2029.
Source: FreshTalk Daily
