The UK government’s decision to impose a £29 (€35) charge on importers of meat and dairy products from the EU for each delivery of a specific item, with costs capped at £145 (€170) per shipment, has sparked widespread complaints from food companies and consumers.
Phil Pluck, Chief Executive of the Cold Chain Federation, has cautioned that many EU food businesses, especially small artisan producers, may cease exporting to the UK due to these charges.
“Those that do continue may face up to £1,000 in additional costs for each multi-consignment lorry entering the UK, leading to higher prices for consumers,” he stated.
With the recent price increases on food staples due to the conflict in Ukraine, pricier European cheese and meat will further burden Britons financially.
Other industry leaders have echoed similar concerns.
Nichola Mallon, Head of Trade at Logistics UK, highlighted that 81% of businesses expressed concerns about the negative impact of these charges in the government’s consultation.
Despite the imminent implementation of these new checks and charges, details about the compliance regime and the cumulative costs facing businesses remain unclear.
The confusion and frustration surrounding these charges stem partly from the UK’s departure from the EU’s single market in January 2021. In contrast, the EU has swiftly introduced full customs controls on imports from the UK.
The UK has faced delays in implementing sanitary checks on meat, dairy, and most plants from the EU since Brexit, citing concerns about business readiness and inadequate border infrastructure.
Although the food industry has welcomed the delays, the prolonged uncertainty about import rules has been detrimental to business operations.
Despite the government’s argument that the charges will help recover costs and protect the food supply, critics, like the Horticultural Trades Association, view the new regime as hastily constructed.
The political choice to introduce these charges follows the watering down of the proposed Brexit Freedoms Bill, which aimed to amend or repeal EU legislation by December 2023. The government asserts that the ability to deviate from EU rules is a key benefit of Brexit.
The opposition Labour party plans to negotiate a veterinary agreement with the EU to minimize checks, but this process may be lengthy without alignment on food safety rules.
With nearly half of the food consumed in the UK being imported, predominantly from EU countries, the introduction of these charges seems counterintuitive.
The controversy over import fees is just one aspect of the broader issue. Concerns have been raised about the impact of new paperwork requirements and the potential delays in food transportation and safety measures.
Ultimately, the decision to end frictionless trade with the EU will affect importers and consumers alike.
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