A new UK-EU agreement is set to remove key trade barriers, with the food and drink sector among the biggest immediate beneficiaries. A new Sanitary and Phytosanitary (SPS) deal eliminates many routine checks on animal and plant products, simplifying imports and exports across Great Britain, Northern Ireland, and the EU. The move reopens EU market access for previously restricted UK goods such as sausages and burgers—critical wins for food manufacturers and distributors.
The deal is expected to restore frictionless trade routes that have been disrupted since Brexit. The government is positioning it as a major boost for small and mid-sized food producers who rely on EU trade. The simplification of compliance processes will help reduce shipping delays, administrative costs, and spoilage risks, improving the competitiveness of UK exporters.
Beyond food and drink, the agreement outlines plans to link the UK and EU’s Emissions Trading Systems. This will aim to shield UK firms from the EU’s upcoming carbon border tax and support energy security. The SPS and ETS changes are projected to add nearly £9 billion to the UK economy by 2040.
The agreement also opens the door for UK defence firms to participate in the proposed €150 billion EU defence fund, while talks will continue on grid integration and cross-border energy initiatives such as offshore wind, hydrogen, and carbon capture.
Additional measures under consideration include youth mobility schemes that could indirectly benefit the hospitality and foodservice sectors.
While business groups broadly support the new deal, they stress the need for further reforms to address remaining regulatory and logistical frictions in UK-EU trade.