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A Game-Changer for Small Food & Drink Exporters


UK–EU Trade Reset Promises Fresh Momentum for SMEs



1. A Long-Awaited Breakthrough


In May 2025, the UK and EU struck a significant Sanitary and Phytosanitary (SPS) agreement, designed to ease trade tensions and reduce burdensome checks on food and drink exports, including meat, dairy, fish, eggs, and other agriproducts. The deal eliminates documentation and physical border checks that have long impeded exporters—especially small businesses—restoring a more fluid trading environment.

This agreement is expected to yield £9 billion in extra economic output by 2040, a welcome boost for the economy. It promises near-term relief, with exports potentially jumping by 16%, infusing the sector with renewed growth.


2. Why SMEs Stand to Benefit Most


Since Brexit, UK food and drink exports to the EU have taken a significant hit:


  • Exports plunged by ~34% (in volume) compared to 2019 levels—reflective of rising export friction.

  • Smaller producers bear the biggest burden from costly export health certifications and administrative red tape—cutting into margins and complicating market access.


The new SPS deal directly addresses these pain points. Businesses like Neal’s Yard Dairy, an artisanal London cheesemaker, highlighted how removing routine checks will help preserve the perishability and quality of their fine cheeses and ease delays.

Moreover, business groups such as the Federation of Small Businesses (FSB) and British Chambers of Commerce framed the agreement as a pivotal turning point—slashing costs, reducing waste, and unlocking export opportunities previously stifled by bureaucracy.


3. Export Growth in Numbers


  • £5.1 billion annually in economic gains is the projected boost from the SPS package, unlocking growth, jobs, and stronger supply chains.


  • +16% increase in export volumes of agri commodities is anticipated, driving momentum for the sector.


4. A Broader Trade Strategy in Action


This agreement is part of the Government’s larger “Plan for Change” and Growth Mission, strategically aimed at revitalizing exports and supporting British business growth. It dovetails with other recent FTA wins—including deals with India and the US—designed to open new markets for food and drink SMEs.


5. Why Timely Action Matters


For small-scale, artisanal firms—such as cheddar-makers, confectioners, charcuterie artisans, dairy farmers, and boutique bakers—exporting goods that are perishable or limited-run, the difference between export viability and prohibitive cost often lies in logistics and red tape.

With the SPS agreement, exporters gain:


  • Faster border turnaround

  • Lower costs

  • Greater predictability

  • Expanded EU market access


This transforms opportunity into actionable growth and opportunity.


6. Final Thoughts: Rolling Out the Reset


The UK–EU SPS deal represents a pivotal reset in post-Brexit trade relations. Its real-world impact is unfolding now—in smoother processes, renewed trade flows, and more accessible EU markets—for SMEs across the food and drink sectors.


For those talented artisan producers and small exporters, the SPS agreement is more than a policy: it's a tangible lifeline.

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