Farmers Union of Wales reacts to the Government's EU deal
Following the announcement of agreements with the USA and India earlier this month, it was the European Union's turn last week, with the announcement of a UK-EU's 'reset' agreement.
The importance of functioning, frictionless trade with the EU for Welsh agriculture cannot be understated.
The EU remains our largest export market, with 2023 seeing 75% of Wales' £813 million food and drink exports sent to EU countries.
Meanwhile, 2024 saw over 90% of Welsh lamb exports going to the EU.
However, since the UK's departure from the EU, increased red tape and a range of bureaucratic measures have become a growing obstacle.
This was reflected in a recent study by the Food and Drink Federation, that found overall food export volumes from the UK to the EU fell by over a third between 2019 and 2024.
To this end, the Farmers' Union of Wales has welcomed elements of the new agreement between the UK and EU that aim to make trade with EU countries easier and cheaper.
The agreement will also see some routine checks on animal and plant products removed completely, allowing goods to flow freely with the EU, and between Great Britain and Northern Ireland.
According to the Prime Minister this will make food and agricultural trade with the EU cheaper and easier and could lower food prices and increase choice on supermarket shelves.
Crucially, the 'reset' secures an agreement on Sanitary and Phytosanitary (SPS) checks, which will streamline the trading of food between the two blocks, as well as easing admin and bureaucratic requirements and paperwork.
The revised SPS agreement sees the UK agreeing to align to EU Laws on plant and animal health production, distribution and consumption, thus allowing the UK to sell products such as burgers and sausages in the EU again.
However, whilst at face value our plant and animal health requirements align with EU standards, we must consider how this may place the UK in a challenging position in future as it no longer has the power, as a formal Member State, to influence European rules and will have to accept the EU's Court of Justice's jurisdiction on the way they are applied.
On the flipside, the agreement could inadvertently strengthen the UK Internal Market by acting as an alignment tool that prevents divergence between rules across the devolved nations.
As was the case with the US-UK Trade 'deal' earlier this year, the devil will be in the details, and we will keep a close eye over the coming months as the negotiations continue.
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