New Trade Barriers: United Kingdom Opts for Strict Food Controls

In the wake of further entanglements after the Brexit referendum, the United Kingdom is now navigating into an era of intensified import controls for food from the EU. After years of hesitation and several postponements, the British Government has announced the introduction of precise documentation requirements and complete checks for EU imports. This development could lead to new, costly barriers for European exporting nations – particularly for Germany, a major player in this field – explained Marc Lehnfeld from Germany Trade and Invest in London. Since the official Brexit in January 2020 and after a transition period, the United Kingdom is no longer part of the EU customs union and single market. While the EU has already been controlling imports from Great Britain, the British side is now catching up. As of January 31, comprehensive documentation will be necessary for the import of animal and plant products, a procedure that should be expanded to full-fledged controls by the end of October. The resulting longer delivery times could lead to further inflation spikes, especially in the British election year 2024, warns Jill Rutter from the Institute for Government. Such an effect would certainly not be met with enthusiasm given that the conservative British government under Rishi Sunak is already trailing behind the Labour Party in polls. The concern is that, to not alienate Brexit supporters, a hard line on EU policy could be pursued. Further problems could arise if EU companies withdraw from the British market due to increased costs and additional effort, leading to shortages in various products, from pork to strawberries. In this context, British consumers and the economy there could feel significant cuts, Lehnfeld notes, especially since in 2023 almost three-quarters of British food imports came from the EU. The challenges are also felt on a regional level – representatives from Baden-Württemberg and North Rhine-Westphalia express concern about the additional effort for veterinary authorities. Despite the foreseeable "frictions" in trade with the EU, the British government emphasizes the value of national sovereignty, as Secretary of State Andrea Leadsom highlights. Businesses could have prepared for the changes, and moreover, the ability to independently conclude trade agreements opens up new opportunities. However, the existing agreements could not compensate for the trade deficit with the EU caused by Brexit. In this context, a so-called SPS agreement à la Switzerland could simplify trade, but an agreement seems unlikely in the election year 2024, Lehnfeld concludes.