Logistics UK: SPS deal will remove trade friction and drive growth

Commenting on reports that the UK and EU have finalised a draft sanitary and phytosanitary (SPS) agreement to remove border checks on food and agriculture exports, Logistics UK Chief Executive Ben Fletcher said a comprehensive SPS deal would be a significant step in reducing trade friction and boosting growth:

“Further progress towards concluding an SPS deal with the EU is hugely positive news for British businesses, including the logistics operators that drive economic growth by keeping trade moving.

“With the EU accounting for around 40% of UK exports, Logistics UK has consistently called for a comprehensive SPS agreement, with such a deal predicted to add £5.1bn a year to the UK economy. Our own analysis shows it could reduce export costs by up to 8% on affected agri-food goods and save between £150 and £250 per consignment. This is particularly significant for groupage operators, which incur charges on every consignment within the mixed loads they carry.

“A finalised UK-EU SPS agreement would also significantly reduce checks, paperwork and delays on agri-food and plant products movements between Great Britain and Northern Ireland, making supply chains more efficient and lowering costs for logistics operators, retailers and manufacturers. This will make it easier for new suppliers and innovative products to generate new business in the EU market, which is vital for growth.

“The logistics sector underpins the whole economy and wants to see the upcoming UK-EU Summit build on this momentum and commit to identifying further opportunities to reduce unnecessary barriers to trade. With every £1 of GVA generated directly by the logistics sector supporting a further £1.04 of economic activity across the economy, improving the UK’s trading relationship with its largest market is an opportunity that will benefit businesses, consumers and growth nationwide.”

Business group Logistics UK champions the logistics sector, the backbone of the UK economy and global trade, providing a unique, authoritative voice for its members. As the only trade association representing the whole industry, it supports more than 22,000 members, operating in road, rail, waterways, sea and air freight, in ports, airports and warehousing, as well as the customers of freight services such as retailers and manufacturers. The group delivers industry representation, services and thought leadership to support a sector that is critical to economic growth, employing 8% of the UK workforce, contributing £175 billion in annual GVA and enabling over £1 trillion of international trade. For more information about the organisation and its work, please visit logistics.org.uk