Speciality-Food-June-2025

8 @specialityfood andmainland Europe, which have caused significant headaches, price hikes, and long lorry tailbacks on both sides of the English Channel. Starmer said the deal will Britain back on the world stage. We are doing deals “that will grow our economy, puttingmore money in the pockets of working people,” he continued. Key takeaways from the UK-EU deal include: • Imports and exports of food and drink between the UK and EUwill be covered by a new SPS (sanitary and phytosanitary) agreement, making it easier to trade across the border. • Some routine checks on animal and plant products will be removed, allowing goods to be movedmore freely, which should lower prices and increase choice in retail. • The EU ban on UK exports of sausages, mince and chilledmeats (in place since 2021) will end. • A new deal on fishing rights means EU boats will continue to have access to UKwaters until 2038. Karen Betts said the move was “incredibly important” for the UK’s manufacturers. “Europe is our single biggest customer, andmost of the food and drink we import - from ingredients to finished products – comes fromEurope too. However, trade in both directions has become complex and challenging.” Exports to Europe have fallen by a third since 2019, she added, saying she’s pleased A new era for British business It will have been refreshing, then, for Sir Kier Starmer and the Cabinet, to find themselves on (largely) the right side of public opinion last month, following a trio of historic trade deals, announced in quick succession – the finer details of which, could have a profound impact on the British food and drink industry. On 6thMay, the PM announced what the Government said was the biggest, andmost economically significant bilateral trade deal the UK has done since leaving the EU, joining forces on a plan with Indian Prime Minister Narendra Modi. The deal should, analysts say, increase trade between the two nations by $34 billion per year from 2040. Until now, India has levied some of the highest tariffs on imports in the world – these have been slashed on 90% of British products, including chocolate, biscuits, salmon and lamb. Tariffs on whisky and gin will be halved from 150% to 75%, falling then to 40% in a decade. Mark Kent, chief executive of the ScotchWhisky Association, said this was a “once-in-a-generation" and “landmark” announcement, enabling Scottish distillers to better position themselves in a market worth nearly $20 billion. As part of the deal, Britain is set to cut its own tariffs, meaning 99% of exports from India to our shores will face no duty. Speaking at the time, Karen Betts, chief executive of The Food & Drink Federation, said the organisation was delighted the deal had been finalised. “This is very welcome news for UK food and drinkmanufacturers, particularly for soft drinks, chocolates, biscuits, crispbreads and crackers, which will now all benefit from tariff-free access to one of the fastest-growingmarkets in the world.” ALL EYES ON AMERICA Just two days after striking a deal with India, attentions turned to the USA on 8thMay, as President Donald Trump revealed details of a new agreement with the UK alongside Starmer. The deal was delivered after weeks of uncertainty in the markets following Trump’s ‘Independence Day’ speech, which unleashed huge tariffs on its global partners. This new agreement, Trump said at the time, represents “a great deal” between Britain and the USA, eliminating barriers to trade 9which he felt were unfairly discriminatory) and allowing a number of American goods to be fast-tracked through our customs. Both he and Starmer called it a historic day and a tribute to the long history between the allies, with the PMmarking the deal as a “really important” step that will boost international trade. While details are to be fully worked out in the coming months, it has been announced that US beef will be imported to the UK, and British beef will be available to the American market. A ‘VICTORY’ FOR EUROPE AND THE UK Perhaps most significant deal of all, was the announcement on 19thMay that an agreement had been reached between the UK and EU. It delivers a swathe of benefits to Britain – a major headline being cutting lengthy and expensive checks between the UK The Government has found itself in the firing line since coming into power in 2024, with announcements such as the removal of theWinter Fuel Allowance payment for pensioners, employer NI contribution hikes, and changes to IHT rules for farmers dominating the headlines as tensions grow. that a closer trading relationship has been delivered. “A high-quality agreement will have clear benefits for consumers and businesses, however, the Government must continue to work closely with industry on the detail, and ensure the UK is able to influence EU decision-making where this impacts British businesses and competitiveness, particularly where the UK aligns with EU rules.” Professor Joe Nellis, economic advisor to accountancy firmMHA, called the deal a victory, adding that the PMhas been “walking a thin tightrope”, balancing the UK’s relationship with the EUwith Trump’s White House as he navigates the delicate global economy. “The EU remains, by far, the UK’s single biggest trading partner. A trade deal that removes barriers to trade will be a real boost to the UK economy, supporting UK exports, boosting lacklustre business confidence, and lowering the cost of living by for UK citizens by providing cheaper food imports,” Joe said, continuing, “The deal is good for UK growth —which is desperately needed — and can be expected to bring a degree of stability for UK exporters and for businesses in general.” TomBradshaw, president of the NFU, said the deal has the potential to deliver a more mutually beneficial trading environment for UK farmers and growers, adding, however, that “detail is king”.