How the new UK-EU deal will benefit food and drink manufacturers

The UK and EU have signed a deal aimed at simplifying trade.

The deal agreed on 19^th May 2025, introduces a number of changes that significantly ease the process of moving food and drink between the UK and EU. These changes look like good news for exporters, as they remove much of the friction which has made access to the European market more difficult in recent years, with simpler processes, which hopefully lower costs and ensure faster delivery.

“Britain is back on the world stage… this deal is a win-win. It gives us unprecedented access to the EU market. The best of any country outside of the EU... It’s time to look forward. To move on from the stale old debates and political fights to find common sense, practical solutions which get the best for the British people.”

Keir Starmer, UK Prime Minister

So, what specifically has changed? How will it impact food and drink manufacturers and are there any downsides? This article will cover all the benefits and drawbacks of the new UK -EU deal for food and drink manufacturers.

What are the key points of the new UK-EU deal for food and drink manufacturers?

The agreement between the UK and EU introduces a new “Sanitary and Phytosanitary Zone” which will reduce trade friction on a broad range of goods. While this is not a return to single market access, it does remove or simplify many of the barriers that emerged post-Brexit.

Here’s a summary of the core changes that affect UK food and drink manufacturers:

Source: UK govt

"While the new rules have not yet been ratified it does appear that SPS border checks will, in most cases, be removed entirely, significantly reducing costs for both importers and exporters. Removing the need for EHCs, PCs, CoIs, not only cuts the cost of each consignment, it also means faster clearances and fewer delays at the border, further reducing the overall cost of each consignment."

Jamie Craig, WTA's Customs Consultant

When will the deal come into effect?

There is currently no information about when the deal will formally come into effect. These things usually take months to be ratified, but there will be emphasis on speeding up this process to benefit businesses on both sides.

UK Prime Minister Keir Starmer has encouraged EU nations to waste no time in allowing UK passport holders to use e-gates across the continent, which is one part of the deal.

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What are the benefits of the deal?

The deal offers a range of benefits, some more obvious than others. Let’s break down how these changes could make a real difference to your business.

Lower operational costs

The removal of Export Health Certificates and other legislative requirements will significantly reduce the costs involved in shipping to the EU market. Mixed loads required multiple export health certificates, which contributes significant additional cost.

There's also cost savings involved in not having to adapt products to comply with two separate markets.

For exporters who send multiple loads per week, the savings could run into the tens of thousands each year. For smaller producers, it removes cost barriers that may have made EU trade unviable since Brexit.

Faster shipments and less spoilage

There are obviously additional time pressures when shipping perishable goods. Delays for dairy, meat, and fresh produce can be disastrous. Under the post-Brexit rules, shipments occasionally faced delays from increased inspections, document checks, and hold-ups at EU ports. Or, worst of all, incompliance with the EU market could lead to an entire container being rejected completely.

By removing routine border checks, the new deal streamlines the process. Fewer delays mean better product quality on arrival, longer shelf life, reduced spoilage, and lower risk of lost revenue.

Wider product eligibility for the EU market

Certain categories of food had been effectively shut out of the EU since 2021. Products like, fresh sausages and burgers, and some shellfish were classified as high-risk and couldn’t be exported at all.

The new agreement allows these goods to enter the market again. For manufacturers in sectors like meat processing or seafood, this is a direct opportunity to re-establish EU contracts.

Increased growth potential across the EU market

The UK exported £14 billion worth of food and drink to the EU in 2024. That figure was still down on £14.2bn exported in 2019, 5 years earlier. This was mostly put down to the increased costs and complexity of trading with Europe.

With friction reduced, UK manufacturers of SPS goods are competing with EU businesses on more of a level playing field. They can now explore new opportunities in the EU without the same regulatory drag. For many SMEs, that could mean re-engaging with EU buyers, attending trade shows, or scaling up volumes that were previously scaled back.

Government modelling estimates that the deal could add nearly £9 billion to the UK economy by 2040.

What are the drawbacks and limitations of the new UK-EU deal?

In order to achieve the new deal, the UK government has had to make some concessions that businesses need to be aware of.

• Regulatory alignment: The UK has agreed to stay closely aligned with EU sanitary and phytosanitary (SPS) standards. While this enables the simplified trade terms, it means less flexibility to diverge from EU food laws in future. The UK is now in a position where it has to broadly follow the SPS standards of a trade bloc, whilst having no influence or control over these standards.
  
  
• Some differences in regulation remain: While this deal removes many frictions, it doesn’t replicate full single market membership. Tariff-free access remains, but there are still customs declarations, and some rules of origin checks that will continue.
  
  
• Fishing concessions: The UK granted the EU extended access to British waters as part of the broader agreement. EU fishermen can now access UK waters until 2038. This is one of the most controversial aspects of the deal and is viewed by many as a betrayal of the UK fishing industry.

Strategic steps for food and drink manufacturers to take now

There are immediate steps you can take to prepare for the changes to UK-EU regulation.

1. Reassess your EU strategy: If you paused or reduced exports to the EU due to costs, now is an ideal time to re-evaluate. The market is becoming more accessible again. Reach out to old customers and see if they’re still interested in your products.
2. Review logistics partnerships: With border checks reduced, talk to your freight forwarder and customs agents about how they can support you through these changes. Reputable logistics providers should be willing to support the process. We certainly are. Reach out to our customs expert, Jamie Craig.
3. Expand product lines: If you had to stop exporting certain products to the EU due to bans, now is the time to look at it again. Furthermore, if you reduced your product range to avoid EHC charges, now is the time to review that. Acting swiftly and conducting the groundwork now to find customers will place you in an excellent position as soon as the deal is ratified.
4. Stay on top of regulatory updates: Although the UK is aligned with EU standards for now, any future divergence could affect compliance. Make sure your compliance and quality teams are informed. Subscribe to WTA's weekly Market Update to be informed of any future developments in customs.

The new UK-EU deal look like the most promising piece of legislation for for food and drink exporters since Brexit. It strips back a lot of the red tape that made EU trade more expensive and complicated, giving manufacturers a clearer path to grow sales.

Food and drink contributes more to the UK economy than any other manufacturing sector. Known for its quality, innovation, and export potential, this is an exciting moment. Less paperwork and lower costs when exporting to the biggest external customer for UK food and drink.

For a comprehensive logistics provider, with an in-house customs and compliance team, who can guide you through the changes as they happen, and offer strategic supply chain enhancements, contact WTA.