Policy & Compliance
The reader should remember that additional or stricter non-tariff barriers have been implemented in 2026 or announced by the EU for later this year and into 2027. Two good examples of these are Import Control System 2 (ICS2), requiring additional data for Safety and Security (S&S) declarations covering goods entering the EU. The second noteworthy example is the now delayed EU Deforestation Regulation (EUDR), which requires companies placing seven named commodities and their derivatives into the EU market to be able to track products back to their origin. The UK is classified as low risk, reducing checks but not eliminating requirements for UK businesses to be able to provide information regarding the location of where these products were produced. Cost of business For UK companies, the cost of doing business with the EU is clear; it is estimated that 14% of firms (16,400) have stopped exporting to the EU, costing the UK approximately £27 billion in lost revenue. On the other hand, the number of customs entries have surged; some estimates indicate an increase from a pre-Brexit level of 55 million to approximately 270 million customs declarations. Whilst customs and other non- tariff barriers will remain, delivering a common SPS area and reforming other elements of trade with a view to easing trade flows would be welcome. These negotiations against a complex global and domestic background will be more complicated than many expect. The EU is likely to take quite a hardline approach to at least certain, in particular trade, areas being re-negotiated, leading some to believe that progress is most likely to be made in non-trade areas. The danger is that some extremely sensitive subjects, such as the debate about the free movement of people, will come back into the spotlight. It will be interesting to see how long the renegotiation of the TCA takes and what the outcome is.
sector issues with, for instance, the steel industry where the UK’s agreement with the EU ends in June 2026. The EU proposes to double the duty rate to 50% for certain out-of-quota steel products, which would have a serious impact on an already struggling sector. It is noteworthy that of the five main areas that the Labour government is looking to re- negotiate, only one relates to trade. • Reducing Trade Barriers: Labour aims to improve trade in goods and services by removing red tape and border checks. A central part of this is a new (SPS) agreement to align on food, animal and plant health standards, making agri-food exports easier and cheaper. This requires the UK to align with some EU rules in specific sectors. This aligns with the previously mentioned comments from the prime minister where aligning standards, criteria and processes is
seen as a useful way to improve customs and other frontier processes. The other trade area for review is the complex rules of origin, which it is believed needs reform. The main non-trade areas to be renegotiated are: • A security pact: A renegotiated EU-UK security pact leading to closer cooperation on foreign policy, defence and the sharing of policing data and intelligence to tackle cross-border crime and illegal migration is seen to be very important. • Improving labour mobility: This comprises various elements, but from BIFA’s perspective some easing of the EES (Entry-Exit System) and ETIAS (European Travel Information and Authorisation System) for UK passport holders would make roadfreight operations easier for drivers. • Mutual recognition of qualifications • Energy and climate
“ The EU is likely to take quite a hardline approach to at least certain, in particular trade, areas being re- negotiated, believe that progress is most likely to be made in non-trade areas leading some to
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