New Brexit Rules to Increase UK Food Prices | £200m Higher Cost for Fruit & Veg!

Introduction

A significant story regarding the UK's economic landscape is evolving, particularly in relation to the newly implemented post-Brexit border rules. These regulations are expected to elevate the cost of importing fruits and vegetables from the European Union by an estimated £200 million annually. In 2022, the UK imported a staggering £3 billion worth of vegetables, with approximately 80% of that figure coming from EU countries.

Under the previous single market membership framework, EU member states benefited from the ability to trade freely under a standardized rule book without internal border checks. However, the UK has now instituted new paperwork requirements that impose additional hurdles for any EU business wishing to send animal and plant products to the UK. Starting in spring 2024, physical inspections will become a requirement, further complicating the trade landscape.

These new regulations represent a form of non-tariff barrier to trade, which will inevitably contribute to increased supply costs and delays for UK supermarkets. As a result, consumers should prepare for potential shortages and higher prices for fresh food, including both plant and animal products, in the coming weeks and months.

Keywords

• Brexit
• import costs
• fruit and vegetables
• £200 million
• single market
• EU trade
• non-tariff barrier
• supply costs
• higher prices
• shortages

FAQ

1. How much are the new Brexit rules expected to increase costs for importing fruits and vegetables?
The new rules are projected to raise costs by over £200 million annually.

2. What percentage of the UK's vegetable imports came from the EU in 2022?
Around 80% of the UK's vegetable imports in 2022 originated from European Union countries.

3. What new requirements are being imposed on EU businesses sending products to the UK?
EU businesses will face new paperwork requirements, and physical inspections of goods will start in spring 2024.

4. How will these new rules affect UK supermarkets?
The new regulations are likely to increase supply costs and delays, potentially leading to shortages and higher prices for fresh food products in supermarkets.

5. What is a non-tariff barrier to trade?
A non-tariff barrier is a restriction on imports or exports other than tariffs, such as additional paperwork or inspections, which can impede trade.