Post-Brexit Border Controls: Impact on Businesses

Introduction

Planned new post-Brexit border controls on animal and plant products imported from the EU will cost businesses around £330 million a year in additional bureaucratic burdens, according to a confirmation from Cabinet minister Baroness Lucy Neville-Rolfe in a letter to a Labor MP. These new controls have raised concerns within the logistics and food industry, as they are expected to increase food prices. As businesses adapt their models and supply chains to integrate the new control regimes, the estimated costs are projected to be £330 million per annum for all EU imports.

The Need for Border Controls

The introduction of border controls on animal and plant products imported from the EU is considered necessary due to the lack of a border after Brexit. Without such controls, it becomes more difficult to combat threats to animal, plant, and human health. One of the main concerns is the potential spread of diseases such as African swine fever, which is widespread in some parts of the EU. The UK government emphasizes the importance of protecting the country’s biosecurity and safeguarding human lives and livelihoods from the potential harm caused by epidemics of these diseases.

Protecting UK Biosecurity

Veterinary and livestock groups have welcomed the introduction of the new border controls, as they believe it will not only protect the UK’s biosecurity but also create a level playing field for British exporters. These exporters have faced full EU border checks since January 2021. The controls aim to ensure that animal and plant products meet the necessary health and safety standards before entering the UK market.

The Cost to Businesses

The estimated additional bureaucratic burdens resulting from the new border controls are expected to cost businesses around £330 million per year. This figure includes the expenses related to export health certificates, which account for approximately half of the total cost. However, it is important to note that this represents a “savings” of £520 million compared to the original border plans. Despite this, trade and logistics groups argue that the costs incurred by the industry over the past three years of Brexit uncertainty are not fully accounted for in this estimate.

The Impact on Food Prices

One of the main concerns expressed by the logistics and food industry is the potential impact on food prices. The introduction of new border controls is expected to increase costs in the short, medium, and long term. While the revised border model aims to reduce physical checks and rely on risk-based assessments, the paperwork involved can slow down the process. This can lead to additional expenses for businesses, ultimately impacting food prices and potentially burdening British consumers.

The Way Forward

The Labor Party has promised to seek a veterinary agreement with the EU if it wins power at the next election. Such an agreement could potentially reduce levels of paperwork and border checks through alignment with EU standards. However, trade expert Sam Lowe suggests that the EU and UK should consider a dynamically aligned “Swiss-style” veterinary deal, where the UK automatically follows EU rules and submits to elements of EU legal supervision. This could eliminate the need for health certificates for export, simplifying the process for businesses and reducing costs.

Urgent Reconsideration

Stella Creasy, president of the Labor Movement for Europe, has urged the Government to reconsider its approach to the new border controls. She argues that the checks represent additional costs to businesses as a result of Brexit, rather than a “saving.” Creasy emphasizes that British consumers are likely to bear the brunt of these costs, as businesses dealing with border paperwork for imported food have limited control over tariffs.

Industry Perspectives

Trade and logistics groups highlight the impact of confusion, delayed deadlines, and continued uncertainty resulting from the new border controls. Peter Hardwick, a trade policy adviser to the British Meat Processors Association, emphasizes that even with simplified certificates, UK border control posts will face a significant increase in workload. While risk-based assessments are emphasized, the checks involved in verifying paperwork can still slow down processes.

Providing Value to Readers

It is evident that the introduction of post-Brexit border controls on animal and plant products imported from the EU has significant implications for businesses. While there are concerns about the additional bureaucratic burdens and potential increase in food prices, the need for these controls to protect UK biosecurity cannot be overlooked. Efforts to seek a veterinary agreement with the EU and explore alternative models such as a dynamically aligned “Swiss-style” deal can provide valuable insights into potential solutions that balance health and safety considerations with trade facilitation.

Summary

The confirmation of new post-Brexit border controls on animal and plant products imported from the EU acknowledges the additional bureaucratic burdens that businesses will face. Estimated to cost around £330 million per year, these controls aim to protect animal, plant, and human health by ensuring the compliance of imported products with necessary standards. While there are concerns about the potential increase in food prices and the burden on businesses, trade and logistics groups emphasize the importance of protecting UK biosecurity and creating a level playing field for British exporters. The introduction of these controls presents an opportunity to explore alternative models and agreements that can alleviate some of the costs and streamline processes for businesses.

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