The UK is making a ‘reset’ deal with the EU – Here’s what it means for your grocery bill
The UK government is urging businesses to prepare for an impending Sanitary and Phytosanitary (SPS) agreement with the European Union – described as a ‘landmark’ deal that could slash red tape, cut costs, and ultimately help stabilise or even reduce food prices for British consumers.
The announcement from the Department for Environment, Food & Rural Affairs (Defra) highlights ongoing negotiations for a new SPS agreement focused on aligning regulations for food safety, animal health, plant health, and animal welfare.
Once finalised, the deal would streamline trade in agri-food products – everything from fresh produce and meat to dairy, shellfish, cheese, salmon, apples, beef, and organic goods – by dramatically reducing border checks, certificates, and associated fees.
Environment Secretary Emma Reynolds called it part of a broader ‘reset’ in relations with the EU, Britain’s closest and largest trading partner. “We are resetting our relationship with the EU to make trade easier and cheaper, and deliver tangible benefits for British businesses,” she said in an accompanying statement on Monday (9 March).
Why this matters for your weekly shop
Post-Brexit trade barriers have hit the agri-food sector hard. Since 2018, UK exports of food and agricultural products to the EU have dropped 22%, a real-terms loss of nearly £4 billion, largely due to new paperwork, delays, and costs.
Businesses currently face steep expenses when exporting to the EU, including:
- Export Health Certificates: up to £200 per consignment
- Phytosanitary Certificates: around £25 plus inspection fees of at least £127.60
- Organic Certificates of Inspection: an average of £35 for items like organic lamb or cheese
- Identity check fees on meat and dairy: £31 per load on average
- Sampling and testing costs: e.g., £1,200 for a load of cheese, £1,400 for salmon, £440 for apples, or £1,200 for beef
- Additional delays and driver charges: up to £149 per load for queueing and £200 per shipment in extra fees
These costs often get passed along supply chains, contributing to higher prices for importers and, ultimately, consumers.
The new SPS agreement aims to eliminate most of these requirements by aligning Great Britain’s standards with EU rules in the covered areas, allowing goods to move with far fewer certificates or controls.
The government says faster trade flows will mean fresher imports reaching supermarket shelves quicker, more resilient supply chains, stronger food security, and greater consumer choice.
Crucially, it should put “downward pressure on food price inflation for families across the country” by reducing delays, unnecessary paperwork, and costs that inflate grocery bills.
While the deal doesn’t eliminate all border frictions, and the UK will still need to follow current rules, including under the Windsor Framework for Northern Ireland, officials argue it addresses a key pain point in everyday trade.
Timeline and next steps
Negotiations are advancing, with the UK targeting finalization later in 2026 and implementation by mid-2027. The government has launched a six-week Call for Information to gather business feedback on readiness and has encouraged producers, processors, retailers, and hauliers to engage with trade bodies and sign up for updates.
Around 500,000 UK businesses could be affected, including many that don’t currently export to the EU but handle plants, food, animals, or animal products and must align with EU rules under the agreement.
For now, businesses are advised to continue complying with existing requirements while preparing for smoother trade ahead.
