Report overview
This study critically evaluates a proposed Veterinary Agreement between the UK and the EU, emphasising its role in facilitating agri-food trade by easing Sanitary and Phytosanitary (SPS) measures. We assess the economic benefits, and legal and political viability of such an agreement.
A Veterinary Agreement is a key solution to the current challenges that sanitary and phytosanitary (SPS) measures create for UK–EU trade. It has the potential to both facilitate trade and to serve as a stepping stone to improve the working relationship between the UK and the EU. Such an agreement would be a strategic precursor to negotiations in other areas of the UK–EU relationship, such as the mutual recognition of professional qualifications. Our analysis underscores the effectiveness of comprehensive, legally enforceable Preferential Trade Agreements (PTAs), particularly those that include SPS provisions, in promoting agri-food trade.
Our comprehensive analysis, based on an extensive review of PTAs and their impact on agri-food trade, demonstrates that the depth, scope, and enforceability of these agreements, and particularly their SPS provisions, are key determinants of their success.
The study delves into the legal and political dimensions necessary for the realisation of a UKEU Veterinary Agreement, highlighting the importance of carefully navigating international law frameworks and political considerations. Various legal formats for the agreement are explored, including standalone agreements, supplements to the existing Trade and Cooperation Agreement (TCA), and TCA amendments. Each of these has unique implications for political feasibility and implementation.
Aligning strategies to maintain high standards while minimising compliance costs is advocated as a viable approach for addressing current challenges to UK trade. In conclusion, this study offers a comprehensive overview of the economic, legal, and political viability of a Veterinary Agreement between the UK and EU. By leveraging detailed data and analyses, it shows enhancing the TCA through the inclusion of specific Agricultural Extra elements, fortified with robust legally enforceable mechanisms, offers significant potential for bolstering the UK’s agri-food sector.
It could lead to an increase in agri-food exports by 22.5% and imports by 5.6%, while also adding 0.22% to the agricultural sector’s value added. This analysis not only illuminates the economic impacts of Brexit on agri-food trade but also emphasizes the necessity for strategically focused negotiations in the development of future UK-EU trade policies. Such adjustments to the TCA would strategically enhance agricultural trade dynamics between the UK and EU, laying the groundwork for a strengthened economic relationship.
