Big news from Brussels and it’s good news for UK businesses trading with the EU. The UK and EU have announced a significant agreement that aims to ease the friction caused by Brexit, particularly for those moving agri-food products and involved in carbon trading. At Denholm Good Logistics, we know just how much these challenges have impacted our customer’s operations, and we’re here to help make the most of these new changes.
For companies dealing in agricultural and food products, the new Sanitary and Phytosanitary (SPS) agreement is a game-changer. Since Brexit, many exporters have faced rising costs, mountains of paperwork, and delays at borders. These hurdles have led to a 21% drop in exports to the EU and forced some businesses to scale back or stop trading entirely. But that’s now set to change.
The agreement introduces a new UK-EU SPS zone designed to streamline the movement of agri-food goods. Export Health Certificates which could cost up to £200 per shipment will no longer be required. If you’re shipping mixed loads of animal products, that’s potentially thousands of pounds saved on a single lorry.
Certificates for plant health and organic goods are also being scrapped, saving time and money. Importantly, routine border checks on agri-food products will be removed, which means less waiting and more certainty when getting goods to market. British staples like dairy, fish, eggs and red meat, currently subject to 100% paperwork checks and as much as 30% physical inspection will be free to move more easily and efficiently.
On the import side, certain products from the EU such as red meat, milk, eggs, and plants will also see routine checks disappear, reducing barriers for UK retailers and wholesalers. And it’s not just about easing existing trade, previously banned UK exports like fresh sausages, certain shellfish, and seed potatoes will once again have access to EU markets.
This agreement does not stop at goods. If you travel with pets, the new multi-use pet passport will make EU travel much more convenient. There’s also good news for businesses operating across Great Britain and Northern Ireland, as moving goods between the two will now require far less paperwork and fewer checks.
Another important update is the UK-EU emissions trading link. Previously, the UK ran its own, smaller emissions market. This setup lacked the stability and liquidity of the EU scheme, making prices more volatile and risking additional charges under the EU’s Carbon Border Adjustment Mechanism, potentially costing UK exporters up to £800 million by 2030.
Now, with the two systems being linked, UK businesses can operate within a larger, more stable market. This not only reduces costs on the path to net zero, but also supports investment in green technologies and jobs, by opening the door for more competitive carbon capture projects in the UK.
At Denholm Good Logistics, we understand how critical these changes are for business. If you want to know how these changes will affect your shipments contact us today!
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