Positives for British agriculture in UK-US trade framework, but challenges remain
The impact of the new UK-US trade framework on British agriculture, including tariff cuts and the maintenance of high standards
The UK and US announced a new trade framework yesterday (8 May). This deal is a coup for UK Prime Minister Keir Starmer as it is the first trade deal signed with the US following President Trump raising tariffs on importers in early April. It also comes only days after the signing of the UK-India free trade agreement.
This is not a comprehensive deal, with further developments expected. However, at this point it has several areas that will affect UK agriculture and CLA members.
Most significantly, the deal includes a reciprocal reduction in tariffs on beef exports. The US will now be able to export 13,000 metric tonnes (shipped weight) of beef into the UK tariff free. British beef exports to the US will also face a reduction in tariffs from up to 26% to 0% for the same quota.
In a call to the CLA prior to the announcement, Environment Secretary Steve Reed confirmed that there would be no reduction in environmental, food or sanitary and phytosanitary (SPS) standards for any US beef imported into the UK. In addition, the deal does not include access to the UK poultry or pig markets. This will mean that American hormone treated beef and chlorinated chicken will remain off the UK market. The deal will also reduce the tariffs to 0% for 1.4bn of litres of American ethanol.
The CLA welcomes the protection of standards and the opportunity for agricultural exports into the US. However, we are clear that the job is not done. The government must not slip on standards in future negotiations and needs to go further in supporting UK exporters into foreign markets.
CLA President Victoria Vyvyan said:
“With the limited information we currently have, it appears as if the Prime Minister has stuck to his word to protect Britain’s world-class standards. That’s good news – for British farmers and for American families who’ll now get the real thing: British beef, raised properly.
"But this isn’t job done. Further technical negotiations risk chipping away at the high standards we’ve fought for."
What we now need is government to commit to working with industry to design a certification system that can ensure beef coming into the UK complies with our rules
“We call on the UK Government to also work with industry to consider the impact of cheaper meat on the UK market, and how British producers might be protected from future price shocks."
CLA experts will provide more detailed analysis of the deal and what it means for members and rural businesses next week.