UK food & beverage products face "outright export bans" in wake of Brexit

UK-based food and beverage producers wishing to trade with mainland Europe are now facing "outright export bans" and "structural" barriers due to bureaucracy connected with Brexit, according to a House of Lords parliamentary subcommittee.

Peers delivered a stark warning that trade in food and agricultural products between the UK and EU would suffer as a result of tariffs and increased checks. 

The Committee called for a rigorous assessment of possible trade barriers as regulations as well as support for producers develops.

Also read: UK exports to EU drop as Brexit disrupts trade

Members also urged the government to look at problems affecting groupage transport, saying that health certification issues and increased paperwork have meant suppliers are more reluctant to send mixed consignments.

The sub-committee chair Lord Teverson highlighted the tough challenges ahead, in particular for small businesses, which are being caused by the increased bureaucracy and necessary preparation for food and agricultural exports to the EU.

"Higher haulage rates and issues with groupage and parcel deliveries are putting further pressure on food and agricultural price exporters," said Teverson.

"Despite the improvements we hope to see, there are now new barriers to UK-EU relations and new administrative costs and burdens will be structural and long-term."

The Lords called for systems to be completely electronic, streamlined and quickly integrated to make it easier for businesses to submit documentation.

Teverson added that, from the EU's perspective, the UK is now a 'third country'.

"The UK and EU have largely achieved their objectives and now have to accept the consequences - both the good and the inconvenient," he said.

"This could ultimately reduce the profitability of Great Britain's food and agricultural produce sectors."

Also read: Triple whammy means UK manufacturers profits to halve in 2021, report finds

In figures released earlier this week by the Food and Drink Federation (FDF) revealed a dramatic drop in exports of meat and fish when compared with the previous year. Salmon, beef, pork, cheese and animal feed were the top five food items from the UK to take the biggest hit, with overall exports down 75.5% from January 2020.

The combination of the coronavirus pandemic and pre-Brexit stockpiling by businesses in the UK ahead of the transition period were contributing factors in the losses, the FDF stated.

However, the lion's share of the damage was most likely a consequence of new non-tariff barriers faced by UK exporters as well as the collapse in groupage movements, which has effectively shut out many small and medium-sized businesses, the food body said.

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