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In a notable call to action, several of Britain's largest supermarkets and food producers, including well-known names such as Marks and Spencer and J Sainsbury, have reached out to the European Union (EU) to advocate for an agreement with the UK government. This agreement aims to facilitate smoother exports of both plant and animal products across the busy English Channel.

This strong intervention from the food industry aligns with the upcoming summit scheduled for May 19, which seeks to 'reset' the trade and security ties that have been strained following the Brexit transition. The letter, which was reviewed by the Financial Times, was signed by 12 prominent companies and addressed to Maro efovi, the EU commission vice-president responsible for Brexit negotiations. In the correspondence, the companies emphasized that, 'at a time when trading relationships around the world are being challenged, now feels like an opportune moment to solidify our economic partnership.'

The urgent plea from the food sector highlights the detrimental effects of 'unnecessary red tape' that has emerged since Brexit. This bureaucracy has made the transportation of food and beverages not only cumbersome but also significantly more costly, impacting both businesses and consumers. The letter was supported by major retailers like Morrisons, Lidl, and Ocado, as well as meat processing giants Cranswick and 2 Sisters.

Adding to the urgency of the situation is the impending local elections in England scheduled for May 1. The pro-Brexit Reform UK party, led by Nigel Farage, is expected to pose a formidable challenge to Sir Keir Starmer's Labour party. This political landscape is crucial as the government has asserted its commitment to negotiating a veterinary agreement with the EU. Such an agreement would aim to eliminate border frictions, including the requirement for export health certificates and other paperwork, which have been cited as significant cost factors by supermarket leaders.

Both the EU and UK have indicated their intentions to finalize a veterinary, or sanitary and phytosanitary (SPS), agreement. However, Brussels has made it clear that this deal would necessitate 'dynamic alignment' with EU laws, meaning that the UK would be required to automatically adopt EU regulations into its own legal framework.

Lord David Frost, a Conservative peer who played a key role in negotiating the original EU-UK trade agreement, has expressed concerns regarding the government's approach. He recently accused ministers of potentially compromising the UKs autonomy by considering a veterinary deal that might involve the jurisdiction of the European Court of Justice over certain aspects of the agreement. In an interview with The Sun newspaper, Frost stated, 'Its increasingly obvious that Labour are going to sell out the country once again.'

The industry voices significant concern that a strong performance by the right-wing populist Reform party in predominantly pro-Brexit regions could destabilize Starmer's administration and diminish ambitions for the EU-UK reset talks, which also plan to tackle other sensitive issues such as migration and fishing rights.

One executive from the food sector remarked that the purpose of the letter was to 'stiffen spines' on both sides of the negotiation as discussions become heated, and to illustrate that a mutually beneficial deal would result in advantages such as job creation, economic growth, and more affordable food prices.

As a backdrop, it is essential to note that the EU accounted for more than 70% of UK food and drink imports last year, valued at 45 billion, while 57% of UK food exports, worth 14 billion, were directed towards the EU. The food and drink industry has faced substantial hardships due to Brexit; a recent report by the Food and Drinks Federation revealed that UK food export volumes to the EU plummeted by 34.1% last year compared to 2019 figures, before the UK formally exited the bloc.

Interestingly, European food and drink imports to the UK saw a rise of 3.3% last year, reflecting the fact that European products are subjected to less stringent checks upon entering the UK than UK goods are when entering the EU, according to the trade association.

The letters signatories concluded with a strong message, stating that an agreement to alleviate border frictions would foster economic growth and promote increased investment on both sides of the Channel. They stressed, 'It is ultimately the customers and communities we both aim to serve that suffer, as well as the farmers, growers, and workers in our supply chains across the UK and EU.'

In response to the letter, the Cabinet Office expressed support, stating, 'We welcome that major UK businesses support our manifesto commitment to negotiate an ambitious SPS agreement to put food on peoples tables more cheaply as part of our strategic alliance with the EU.'

As of now, the European Commission has refrained from providing any comments on the matter, further adding an air of uncertainty to the ongoing discussions.

This report also includes additional insights from Laura Onita in London, highlighting the complexity and interconnectedness of trade relations post-Brexit.