UK and EU Edge Closer to SPS Agreement, Offering Relief to Agri-Food Trade
Negotiations between the United Kingdom and the European Union on a new Sanitary and Phytosanitary (SPS) agreement are progressing, potentially easing post-Brexit trade friction in the agri-food sector. The agreement, if finalized, aims to reduce non-tariff barriers and streamline procedures for exporters, offering a much-needed boost to businesses grappling with increased costs and administrative burdens since the UK’s departure from the EU.
The push for an SPS agreement comes as the UK government faces mounting economic pressures and recognizes the need to improve trade relations with its largest trading partner. While the government emphasizes maintaining some regulatory autonomy, the proposed agreement signals a pragmatic shift towards closer alignment with EU food standards, a move carefully framed to avoid political backlash from those concerned about diverging from EU regulations.
According to Juan Manuel Vieites, president of the Confederation of Entrepreneurs of Galicia (CEG), the agreement is crucial for mitigating the negative impacts of Brexit on the agroalimentary sector. Vieites recently attended a working meeting in Madrid with British Ambassador to Spain, Alex Ellis, to discuss the impact of Brexit on agri-food trade and potential solutions to reduce non-tariff barriers.
The agroalimentary sector has been particularly hard hit by Brexit, Vieites reportedly stated, due to its sensitivity to non-tariff barriers, sanitary and phytosanitary controls, and logistical and administrative requirements. This has disproportionately affected small and medium-sized enterprises (SMEs) and producers of perishable goods.
Spain, along with other EU member states with strong historical trade ties to the UK, has experienced a significant decline in agroalimentary and fisheries exports to the UK since 2019 – a drop of 18-19% in volume. Despite this decrease in volume, the value of these exports has increased by around 19%, driven by higher product prices and inflation. Sectors particularly vulnerable to delays and SPS controls include fruits, vegetables, wine, olive oil, and fisheries products.
For the Galician region of Spain, the impact has been even more pronounced due to the strategic importance of the fishing, aquaculture, and seafood processing industries. The UK has historically been a key export market for Galician products and a vital source of access to its fishing waters. Vieites explained that Brexit has resulted in a loss of competitiveness for Galicia in the British market, particularly in terms of export volume and business profitability.
The potential SPS agreement could substantially improve the prospects for the Galician sector, although a full recovery to pre-Brexit conditions is unlikely. Key benefits would include reduced logistical costs, increased competitiveness for exporters, and greater legal certainty. Specifically, the agreement could alleviate challenges faced by the Galician fleet regarding access to British waters and streamline export procedures for fresh and processed seafood.
However, Vieites cautioned that even with an SPS agreement, the UK would remain outside the EU single market and customs union. This means customs controls, rules of origin requirements, and some degree of regulatory fragmentation would persist, alongside uncertainty regarding the negotiation and implementation timeline.
The agreement is expected to lead to a reduction in logistical costs and increased legal predictability, particularly for Spain and Galicia. It could also ease some of the burdens faced by dairy and meat producers, who have encountered increased certification requirements, as well as wine and spirits exporters dealing with higher logistical and tax costs. Producers of organic products would also benefit from reduced requirements for specific certificates and improved commercial agility.
Negotiations between the EU and the UK began in October 2025, with both sides expressing optimism about reaching an agreement within 12-18 months. The agreement is anticipated to include mutual recognition of inspection systems, alignment on animal welfare standards, streamlined certification procedures for organic products, and enhanced cooperation on plant health measures. Removing Export Health Certificates alone could save businesses up to £200 per consignment, potentially amounting to thousands of pounds for lorries carrying mixed loads of animal products.
While the agreement represents a significant step towards mitigating the negative effects of Brexit on agroalimentary trade, it is viewed as a pragmatic solution rather than a complete reversal of the changes brought about by the UK’s departure from the EU. The UK will continue to navigate the complexities of operating outside the single market and customs union, and ongoing adjustments will be necessary for businesses to adapt to the new trading landscape.
