Further to the Written Statement of 9 March 2026, I am today updating the House on the Government’s work to support business preparation for a future Sanitary and Phytosanitary (SPS) Agreement with the European Union. Negotiations continue with the European Union and are set to conclude this summer. It is our intent that businesses be ready for, and benefit from, the deal from mid-2027.

The deal will apply to businesses in agri-food and related sectors, including producers, manufacturers, retailers, wholesalers, hauliers and logistics providers, irrespective of whether they export to, or import from, the European Union. It will facilitate the smooth flow of agrifood goods, including plants, from Great Britain to Northern Ireland, protecting the UK’s internal market.

As previously set out, the Government is seeking an agreement that will make it easier, cheaper and quicker to move food, plants, animals, and related goods across our borders. Unnecessary costs, burdens and delays currently faced by British businesses throughout the agri-food, and related sectors, will be reduced.

The SPS agreement will deliver significant benefits for UK businesses trading with the EU, our closest partner and largest agri-food market. The agreement is expected to increase UK exports of key agricultural commodities to the EU. It could add up to £5.1 billion annually to the UK economy by 2040, while reducing red tape and lowering costs for businesses and consumers.

The Government will work proactively to reach an estimated 500,000 businesses that may be affected by the changes. This includes a communications campaign, alongside detailed sector-specific information that is now available on GOV.UK and will be developed as negotiations progress. In addition, we are undertaking targeted engagement activity to ensure businesses understand what is required and how to prepare.

Businesses have told us that they want early clarity to support their preparations and we have listened. Government is committed to transparency and to providing clarity where we can at the earliest opportunity. As part of the commitment we have made to UK business, we are now providing sector specific information that sets out the broad nature of the changes that may be required.

Some of the detail is still subject to negotiations. Depending on the final negotiated outcome, businesses may need to consider changes in areas including production and processing requirements, certification, labelling, IT systems, and wider compliance activity. We know that some businesses will need to adjust to the new arrangements and we will work with those businesses to make sure they have the detail required to be ready. We will provide more information once negotiations conclude. Any changes requiring legislation will be subject to the usual parliamentary scrutiny.

As part of our business engagement, we have established a new SPS Readiness Business Advisory Council, which has met for the first time. Comprised of representatives from across the agri-food supply chain, including producers, manufacturer's, retailers, logistics providers and and trade bodies, we are collaborating with them to ensure that we hear from – and understand more – about what businesses need and how they can best prepare themselves to benefit from upcoming changes. Responses received to the Government’s Call for Information launched in March, which totalled 489 responses, will also be used to co-design and deliver support and guidance through to mid-2027.

Businesses can engage with trade bodies, sign up for Defra alerts, and explore how potential changes may affect their operations. By preparing now, businesses can put themselves in the best possible position to benefit from day one.

This SPS agreement recognises our shared interests, common challenges, commitment and co-operation to resetting our relationship with the EU. It will deliver real benefits for British business. We will actively support UK businesses to seize those opportunities and drive growth.

The Government will continue to engage closely with businesses, trade bodies and other stakeholders, as negotiations soon conclude and I will continue to update the House.

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