Logistics UK welcomes plan to remove EU border checks on food

UK trade association Logistics UK has welcomed news that the UK and European Union (EU) have finalised a draft agreement that would remove border checks on food and agricultural exports.

Logistics UK chief executive Ben Fletcher said a comprehensive sanitary and phytosanitary (SPS) deal would be a significant step in reducing trade friction and boosting growth.

“Further progress towards concluding an SPS deal with the EU is hugely positive news for British businesses, including the logistics operators that drive economic growth by keeping trade moving,” Fletcher said.

“With the EU accounting for around 40% of UK exports, Logistics UK has consistently called for a comprehensive SPS agreement, with such a deal predicted to add £5.1bn a year to the UK economy.

“Our own analysis shows it could reduce export costs by up to 8% on affected agri-food goods and save between £150 and £250 per consignment.

“This is particularly significant for groupage operators, which incur charges on every consignment within the mixed loads they carry.”

A finalised UK-EU SPS agreement would also significantly reduce checks, paperwork and delays on agri-food and plant products movements between Great Britain and Northern Ireland, making supply chains more efficient and lowering costs for logistics operators, retailers and manufacturers.

“This will make it easier for new suppliers and innovative products to generate new business in the EU market, which is vital for growth,” said Fletcher, who went on to highlight the benefit of the logistics sector to the overall UK economy.

“With every £1 of Gross Value Added generated directly by the logistics sector supporting a further £1.04 of economic activity across the economy, improving the UK’s trading relationship with its largest market is an opportunity that will benefit businesses, consumers and growth nationwide.”