New UK-EU trade agreement: what it could mean for your rural business

The UK and EU are negotiating a new sanitary and phytosanitary (SPS) agreement aimed at reducing trade friction on food, animal and plant products following Brexit. Although the negotiations are at an early stage, the SPS agreement creates a number of implications for farmers, growers, foresters and rural businesses across England and Wales.

In order to shape negotiations, Defra has launched a Call for Information to gather evidence on how an SPS agreement could practically affect businesses. The CLA intends to respond and is seeking views from members to ensure our position is grounded in real-world experience.

Sanitary and phytosanitary rules cover food safety, animal health, plant health and biosecurity. Since the end of the Brexit transition period, the UK has been able to set its own SPS rules in Great Britain. Northern Ireland continues to follow EU legislation under the Windsor Framework.

This has created a regulatory divergence between GB and the EU which has brought both opportunities and challenges. For example, the UK has gained greater flexibility to review plant protection product regimes considering local climatic conditions. At the same time, divergence has increased trade friction, with additional checks, certification requirements and delays affecting the movement of traded products between the UK and the EU.

Under the Common Understanding agreed at the UK-EU Summit in May 2025, there was a commitment to pursuing an SPS agreement to make trade “easier, cheaper and more predictable for goods to move not just between the UK and EU, but also within the UK itself”. The government has indicated a target implementation timeframe of mid-2027.

According to Defra guidance published in March 2026, the scope of a UK-EU SPS agreement could include a wide range of areas relevant to CLA members, such as:

• animal health, breeding and welfare
• plant health, forestry and reproductive materials
• food safety, hygiene and marketing standards
• feed and veterinary medicines
• plant protection products and maximum residue levels
• genetically modified and precision bred organisms

Delivering the agreement would likely require “dynamic alignment” with EU relevant legislation, meaning the UK would have to adopt certain EU legislation domestically. Defra has published a full list of this legislation which it is expected the UK would adopt, although this will be subject to negotiation. Importantly, this legislation would then apply to all UK producers, not only those trading with the EU.

The government intends to retain the ability to set high standards for animal welfare, protect public health and support innovation. There are indications that certain areas may be exempted in some way from alignment, but (as with the legislation in scope) these details remain subject to negotiation.

At the UK agri-food sector level, analysis has shown that post-Brexit agrifood trade between the UK and EU has declined, reflecting the scale of new nontariff barriers, such as paperwork, inspections and delays at the border. An agreement could help reverse this trend.

At an individual business level, benefits could include:

• removal of export health certificates, which can cost around £200 per consignment
• fewer physical border checks and faster transit times
• improved supply chain certainty
• renewed access to EU markets for products such as seed potatoes, shellfish and certain meat products

For businesses reliant on time-sensitive or perishable goods, smoother trade could significantly reduce spoilage risk and logistical costs.

Plant protection products (PPPs) and maximum residue limits are within the scope of SPS negotiations. A report commissioned by CropLife UK has highlighted significant potential impacts of up to £810m on the total income from farming if the UK were required to undertake day-one alignment with EU PPP rules. This underlines the importance of realistic transition periods and clear arrangements for existing authorisations.

While an SPS agreement should reduce friction, representative voices in the horticultural sector have voiced concerns on plant biosecurity should an aligned SPS area reduced border checks. Current UK controls under the Border Target Operating Model are risk-based, and recent disease responses have suggested growing improvements in their capabilities. An Environment, Food and Rural Affairs Committee report has recommended that within an SPS agreement the government must ensure continued ability to maintain “controls against serious plant and animal disease threats”.

England has moved ahead with the ability to develop precision bred organisms (PBOs) after removing PBOs from the regulatory system of genetically modified organisms (GMOs) through the Genetic Technology (Precision Breeding) Act. This has given England a first mover advantage in this area. However, GMOs currently fall within the scope of SPS discussions, and there are concerns that dynamic alignment could restrict the Precision Breeding Act, damaging the UK’s ability to innovate. The Environment, Food and Rural Affairs Select Committee has recommended seeking targeted exemptions in this area.

The government has emphasised its commitment to maintaining high UK animal welfare standards. However, questions remain around how welfare standards will interact with trade, particularly in relation to imports from countries with lower standards and ongoing reforms within the EU itself.

Defra’s Call for Information, open until Thursday 23 April, is seeking evidence on the likely impacts of an SPS agreement, including benefits, costs and how prepared businesses are for change.

The CLA has prepared a draft response, but this will be strengthened by further input from members. We are keen to understand:

• which current SPS requirements create the greatest operational or financial burdens for you
• where an SPS agreement could unlock the most opportunity for your business
• what support or transition arrangements would be needed to adapt successfully

This evidence will help ensure the CLA’s advocacy reflects the realities faced by rural businesses and protects members’ long-term interests as negotiations progress.

If you would like to share your experience or views, please contact Jack Chivers (jack.chivers@cla.org.uk) or respond directly to the Defra Call for Information via the link below.