A key sector of the British economy is slamming Rishi Sunak’s Brexit deal as a new labelling system threatens hundreds of small businesses.
The PM’s Windsor Framework came into effect two months ago, and was designed to solve the incendiary issue of trade with Northern Ireland – both within the UK and with the EU. Boris Johnson’s Northern Ireland protocol had effectively created a border in the Irish Sea between Northern Ireland and mainland UK after the exit from the bloc, upsetting Unionists.
However, Mr Sunak’s new deal, signed in February, promised “smooth flowing trade within the whole United Kingdom” by creating distinct production lines between goods that are meant to stay within the UK, and those that are destined for the EU. But the way the policy has been implemented risks hundreds of millions of pounds in trade, industry bosses have warned.
As of October 2023, all meat and some dairy products must have “not for EU” labels if they are to be sold in Northern Ireland.
This is to clearly separate them from goods meant for the Republic of Ireland, which remains in the EU single market and is therefore subject to different standards.
Come October next year, all meat and dairy products across the UK will have to feature the labels. This applies even if there is no intention of them being sold in Northern Ireland.
And even more food products will be required to have the labelling by July 2025. The rule applies whether the food is produced domestically, or imported in.
But industry bosses are arguing this goes far beyond the necessary requirements of the Windsor Framework, and could cost local businesses thousands in lost exports to the EU.
The cost and inefficiency of carrying out separate production lines for British and European markets means that many will not be able to justify the cost, and cut off their exporting altogether.
Ex-Brexit Party MEP Ben Habib previously told Express.co.uk that the additional administration required in the Windsor Framework was dangerous for British exporters, saying: “The green lanes do not work. To use a green lane every shipment requires the entry of 21 separate items of information.
“And they must be transported in sealed containers to ensure no cross-contamination from goods not properly documented. It simply is not cost-effective for smaller ‘exporters’ based in GB. Many have already given up on Northern Ireland.”
Balwinder Dhoot, director of sustainability and growth at the Food and Drink Federation, said the costs of the new requirement could “run into hundreds of millions of pounds a year across the industry.”
The new system was described as “absolutely cataclysmic for food exporters” by Sean Ramsden, director of the Food and Drink Exporters Association and the CEO of food export business Ramsden International.
Speaking to Politico, he said he was worried that “eventually all of the products” he is supplied with by partner Co-op “will be labeled ‘not for EU,’ which means we can’t export them to the EU.”
He also pointed out that consumers who are not from the EU will likely be put off by the “not for EU” labels.
He said: “If we export to other markets, what are the consumers going to think when they see ‘not for EU’ on the packaging? They are going to question whether it’s safe.”
Smaller businesses are particularly under threat as even though labelling may not seem hugely significant, it requires entirely new production runs.
A Government spokesperson said: “The Windsor Framework drastically reduces the paperwork and processes required compared to the old protocol. We continue to engage extensively with businesses to support them in adapting to these new arrangements.”
