UK-EU Trade Deal Brings Relief to Supermarkets and Food Exporters
A new UK-EU trade agreement focused on food and drink has delivered much-needed relief to British supermarkets, food producers, and grocery exporters. After years of disruption caused by Brexit, customs delays, and regulatory confusion, the latest deal marks a turning point—bringing stability to the food supply chain and optimism for future trade growth.
Retailers across the UK are already seeing improvements in delivery times, cost predictability, and availability of key products. British exporters, particularly SMEs in food and drink, are hopeful that the agreement will help reverse the sharp declines seen in recent years.
Pre-Deal Challenges: UK Food Exports in Decline
According to the 2024 Trade Snapshot from the Food and Drink Federation (FDF), UK food exports to the EU fell by 34.6% compared to pre-Brexit levels. This significant drop has been attributed to increased paperwork, certification rules, and border inspections required by the EU, making it harder for British businesses—especially smaller ones—to compete.
UK Food & Drink Trade Snapshot (2019–2024)
| Metric | 2019 | 2023 | 2024 | Change (2019–2024) |
|---|---|---|---|---|
| UK food exports to EU (£ Billion) | 12.0 | 8.3 | 7.8 | -34.6% |
| Global UK food exports (£ Billion) | 23.2 | 20.4 | 17.8 | -23.2% |
| EU food imports to UK (£ Billion) | 38.7 | 43.3 | 44.7 | +15.5% |
| Global UK food imports (£ Billion) | 55.9 | 60.9 | 63.1 | +12.9% |
Top UK Food Exports to the EU in 2024
The UK’s main exports to the EU include whisky, cheese, and chocolate. However, all three categories have seen year-on-year declines due to post-Brexit logistics and certification burdens.
| Product | Export Value (£ Million) | % Change vs 2023 | Key Challenges |
|---|---|---|---|
| Whisky | 1,370 | -6.2% | Tariffs and branding regulations |
| Cheese | 653 | -10.2% | Cold-chain delays and origin labelling |
| Chocolate | 812 | -8.9% | Customs delays and packaging laws |
UK Global Food Exports – 2024 Update
While exports to the EU declined by 17.2%, the UK’s global food exports rose by 5.7%. This suggests that trade with non-EU countries is performing better—thanks in part to trade agreements with nations like Japan, Australia, and Canada.
| Region | Export Volume Change (2024) | Comment |
|---|---|---|
| European Union | -17.2% | EU regulations still pose major hurdles |
| Global Markets | +5.7% | Growth in North America & Asia-Pacific |
| Global Total | -12.6% | Weighted down by EU losses |
Why Supermarkets Are Relieved
Supermarkets in the UK rely heavily on daily imports of fresh produce, dairy, meats, and packaged foods from the EU. The new agreement simplifies import procedures, enabling smoother deliveries and avoiding product shortages that had become common in recent years.
Retail analysts say this also benefits British consumers, who will see lower prices, fewer empty shelves, and more consistent product availability—especially in grocery staples and seasonal items.
Forecast: Will UK Food Exports Rebound?
Trade experts believe that the recent deal could help UK food exports recover by 2025. However, for long-term growth, the UK must deepen trade cooperation across multiple industries.
Forecast: UK Food Export Value (£ Billion)
| Year | Projected Value | Growth Rate | Key Drivers |
|---|---|---|---|
| 2025 | £19.0 | +6.7% | Efficiency gains from trade deal |
| 2026 | £20.4 | +7.3% | Return of SMEs to EU markets |
| 2027 | £21.8 | +6.9% | Improved logistics and trade support |
| 2028 | £23.2 | +6.4% | Expansion into global markets |
The Way Forward: Broader Collaboration with the EU
The success of this food trade agreement must not be an isolated achievement. The UK government is now encouraged to pursue similar cooperation in other sectors, including:
- Pharmaceuticals
- Green energy
- Automotive manufacturing
- Digital services and AI
To boost exports and remain competitive, the UK must focus on:
- Simplifying customs procedures
- Supporting SMEs with compliance resources
- Investing in digital trade platforms
- Negotiating mutual recognition of standards
- Rebuilding trust in UK-EU regulatory cooperation
A Turning Point for UK Trade
The latest UK-EU food trade deal represents a critical milestone for supermarkets, exporters, and consumers alike. While Brexit initially caused unprecedented disruptions, this agreement shows that practical cooperation and shared economic interest can still prevail.
To truly turn the corner, the UK must use this momentum to expand its trade diplomacy, make exports more competitive, and restore its position as a reliable trade partner in Europe and beyond.