The UK’s new EU trade agreement was announced on May 19th. The specifics are yet to be detailed but there are measures being introduced that could support hospitality businesses.
‘Keir Starmer has vowed his EU reset deal will deliver cheaper food and energy for British people, heralding a “win-win” as he sealed the high-stakes agreement with concessions on youth visas and fishing.’ (Source – The Guardian).
Starmer hopes UK-EU Trade Deal brings food prices down and demand for UK supply up.
Keir Stamer has agreed a new UK-EU deal which will remove the “routine checks” currently in place on animal and plant products moving between Great Britain and Northern Ireland.
A new sanitary and phytosanitary deal has also been agreed to make it easier for food and drink to be imported and exported across the EU. For businesses such as meat producers, it means British burgers and sausages can hit EU shelves again for the first time since Brexit.
While the trade border in the Irish Sea will remain in place, the new deal when implemented, should mean no physical checks on British food products at all Northern Ireland ports. Customs declarations will still be required by law.
It is hoped the free flow of food between borders will help reduce red tape for businesses, simplify food exports and imports, and help cut lorry queues. In theory, this means fewer delays, better availability and – eventually – lower prices which will be a welcome relief for hospitality businesses and consumers alike.
Food being shipped from Great Britain to Northern Ireland will no longer need the paperwork and checks which have been in place since 2021 following Brexit deals. Any implementation of the agreement will likely be next year at the earliest.
A reset on post-Brexit deals
The deal was announced as part of a “reset” of the relationship between the EU and the UK, between Prime Minister Sir Keir Starmer and EU Commission president Ursula von der Leyen.
A 12-year extension which will allow EU-fishing boats to enter UK waters has also been allowed as part of the deal. Due to come to an end in mid-2026, the deal will now be extended to 2038 and allows access to the UK’s 6-12 mile coastal waters. Access will be based on the average tonnage caught between 2012-16 in each others 200-mile zone of Exclusive Economic Zone.
The reduced customs checks and paperwork outlined in the deal is a massive boost to Scotland, who supply the UK’s top food export of salmon. In 2024, salmon exports hit a record £844 million, with France accounting for 55% of the total. The relaxation on getting food products into the EU will allow for less delays and lower costs, with the UK government projecting that the agreement could add £9 billion to the economy by 2040. The extension to EU fishing rights, however, could impact salmon farming significantly.
Filling the shortage in hospitality workers
The UK and the EU have also come to an agreement which may see young people living and working freely across Europe again, bringing a much needed boost to staffing issues in the hospitality industry.
The youth experience scheme would allow young people aged 18-30 or 18-35 to come to the UK for a two or three-year period to work, providing they can prove they have £2,530 in savings and pay a health surcharge.
Data from Caterer.com showed that more than 92,000 workers from the EU are estimated to have left the hospitality industry between August 2020-21, with the impact of Brexit and Covid-19 seeing the number of EU workers in UK hospitality drop 26% between 2019-21. The industry has struggled substantially to fill the massive gaps left by European workers when Brexit deals were brokered.
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