Remove bureaucratic barriers to enhance EU trade, FDF urges
The Government possesses numerous opportunities to enhance exporters’ confidence and provide assistance to businesses in their efforts to compete internationally and venture into untapped markets.
According to the Food & Drink Federation’s H1 Trade Snapshot, food and drink exports fell 6.1% to £11.2bn in H1 2024 compared to the same period last year.
The decline was driven by a fall in alcohol exports, with food and soft drink exports remaining steady.
Ireland remains the UK’s largest single export market, rising 1.1% to £2.0bn. However, overall exports to the EU, the UK’s biggest trading partner, have fallen by a quarter (23.6%) in volume terms compared to H1 2023, while exports to the rest of the world are up 0.8%.
FDF research highlights the importance of the EU, which receives 59.4% of all food and drink exports, with more than half (59%) of manufacturers saying that our relationship with the EU should be a top priority for the new government.
The FDf argues that tade with the EU is getting more challenging for British food and drink businesses with growing bureaucracy as additional checks come into force. This includes the second phase of border changes introduced in April raising fees for businesses; an increase in Sanitary and Phytosanitary (SPS) check rates for meat, milk, and fish products from September; and further implementation of border controls applying to fresh produce from 1 July 2025. These new regulations add to the administrative burden for companies, reduce flexibility and increase costs for food and drink – particularly for SMEs.
The federation notes how an SPS agreement would reduce checks, and boosting practical export support would help companies navigate export processes, particularly for SMEs. Reviewing and simplifying the use of Common User Charge would also help businesses, it adds.
Balwinder Dhoot, director of industrial growth and sustainability says she recognises consumer affection for the UK’s food and drink businesses brands and products not just at home but across the world.
“These figures show that manufacturers are facing increasing bureaucratic barriers when exporting, particularly to the EU,” Shoot adds. “There is a lot the Government could do to build exporters’ confidence and support businesses to compete overseas and expand into new markets, including by removing bureaucratic trade barriers.”
Beyond Europe, exports to India have risen by 11.9%, reaching £127.2m in H1 2024 compared to the same period last year. Increased market access through a well-balanced free trade agreement (FTA) has the potential to build on this success and boost trade with India.
Another market that could expand for UK exporters is the UAE, with exports rising steadily, by 2.4% in H1, to £202.4m. An ambitious trade agreement with the Gulf Cooperation Council (GCC) could drive significant growth in trade, as we’ve seen under the UK-Australia FTA, where exports have increased by 7.1% to £196.7m.
Imports rose again by 3.2% to £31.1bn in H1 2024. Morocco (29.4%), South Africa (24.0%) and New Zealand (22.8%) saw the largest increases. However with 70.8% of imported food and drink coming from the EU, as with exports, the removal of non-tariff barriers would make a real difference.
FDF research shows that, for nearly half (47%) of members, administrative costs are a barrier to imports. Removing these obstacles would keep the cost of imports down and help ensure the UK’s continued food security.
