UK–EU SPS Agreement Explained: Benefits, Risks, and The Next Steps

Brexit reintroduced complex SPS checks, which disrupted the UK–EU agri-food trade, leading to increased costs and delays. After five years of debate, a new SPS Agreement has been reached to simplify cross-border trade, reduce bureaucracy, and ease the burden on businesses. Discover what the new SPS deal means for supply chains, including key benefits, risks, and next steps for logistics companies.

THE ROAD TO THE SPS AGREEMENT

When the United Kingdom officially left the European Union on January 31, 2020, Brexit introduced not just political and economic shifts but a bureaucratic earthquake for trade in agri-food goods. One of the most contentious outcomes was the reintroduction of Sanitary and Phytosanitary (SPS) controls: rules designed to ensure food safety and prevent the spread of pests and diseases in animals and plants.

Under the EU-UK Trade and Cooperation Agreement (TCA), the UK left the EU's SPS regime, meaning:

• Exports of products like meat, dairy, eggs, and plants required new certification and inspections.

• Groupage shipments, where multiple consignments are bundled together, have become disproportionately complex.

• Delays and costs surged at borders, particularly affecting small and medium-sized enterprises (SMEs).

For the last five years, both businesses and border authorities have struggled under the weight of these rules. The importers of food from the EU into Britain have stated that the post-Brexit physical checks on animal and plant products would result in a cost increase of up to 60 per cent. Meanwhile, in Northern Ireland alone, plant importers reported cost increases from £60 to over £300 per load due to new documentation and inspection requirements.

Amid rising costs and growing discontent, the EU-New Zealand SPS model, which is based on dynamic alignment, was often cited as a better and more trust-based system. As a result, the industry groups lobbied hard for the UK and EU to adopt a similar model. After five years of intense political negotiations and increasing pressure from UK businesses, May 2025 marked a breakthrough: the UK and EU agreed to remove most SPS checks and create a framework for more frictionless agri-food trade.

WHAT CHANGES?

On May 19, 2025, the UK and EU signed a new Sanitary and Phytosanitary (SPS) Agreement to vastly simplify trade in plant and animal products by reducing border checks. The parties agreed to establish the SPS Common Area to lower trade barriers for agri-food products, reduce administrative complexity, and facilitate smoother cross-border supply chains, particularly between Great Britain, the European Union, and Northern Ireland. The SPS Common Area aims to restore near-frictionless trade, but what does it change?

Firstly, the export health certificates will be abolished, allowing companies to save significantly on each shipment of goods. By eliminating phytosanitary certificates, inspection certificates for organic products, and certification requirements for marketing standards, companies will also reduce the time spent on paperwork.

Secondly, the routine border controls on agri-food products will be completely stopped. This change will enable fresh products to reach supermarket shelves more quickly both in the UK and the EU, with less paperwork and lower costs. Currently, British products, including dairy, fish, eggs, and red meat undergo 100 per cent paper inspections and up to 30 per cent physical checks.

Additionally, products that were previously banned in the EU, including fresh sausages, hamburgers, certain shellfish, and meat products, will again be permitted entry into Europe. Meanwhile, the UK will eliminate routine checks on imports from the EU for products such as milk, dairy, eggs, red meat, plants for planting, and potatoes. This will make it more affordable to import these products into the UK.

KEY BENEFITS OF SPS AGREEMENT

✅ Fewer Checks and Less Red Tape

The new agreement aims to streamline border checks and reduce paperwork, facilitating the more efficient movement of goods between the UK and the EU. It is especially beneficial for smaller exporters, who have struggled under post-Brexit rules, with hopes of reversing the significant decline in food and drink exports since 2019.

✅ Smoother Transit Through Great Britain

Changes implemented in September 2024 streamline SPS check notifications via the Goods Vehicle Movement Service (GVMS), enabling quicker identification of loads requiring inspection. It improves efficiency and reduces delays for POAO (Products of Animal Origin) transiting through the UK.

✅ Economic and Market Benefits

The deal is projected to add up to £9 billion to the UK economy by 2040 and reopen EU markets to a wider range of British food products. It's expected to lower costs and boost availability for businesses and consumers on both sides.

✅ Reinstatement of Trusted Trader Schemes

Although full mutual recognition isn't in place, the agreement allows for exploring simplified processes for certified or trusted traders. It could mean fewer inspections and faster processing for compliant POAO shipments in the future.

✅ Facilitation of Groupage Shipments

The deal addresses post-Brexit challenges related to groupage by introducing simpler certification and inspection procedures for mixed consignments. This change benefits SMEs and niche exporters by reducing delays and admin for smaller, consolidated loads.

MAIN RISKS & CONCERNS

❌ Unclear Implementation Timeline

Although the Agreement has been signed, a legal text and enforcement plan are still pending, and no precise start date has been established. Currently, the draft SPS Agreement text is expected to be ready in Q3 2025. This delay creates uncertainty for operators who need clarity on training, systems, and compliance.

❌ Costly Stranded Infrastructure

UK ports have spent over £120 million building Border Control Posts (BCPs) since Brexit. These may now sit unused, prompting calls for government compensation.

❌ Regulatory Alignment & Sovereignty Trade-offs

The UK must dynamically align with evolving EU SPS rules, which some perceive as a compromise on sovereignty. A divergence could cause checks to return, which is a potential concern for long-term business planning.

❌ Biosecurity Risks

With relaxed checks, risks of disease transmission (e.g., African Swine Fever) could rise. Animal health experts warn that excessive deregulation could compromise national biosecurity.

❌ Ongoing Concerns

Logistics UK provided a list of ongoing issues that remain unsolved in the interim period until the SPS Agreement comes into effect. The concerns are: "the disproportionate impact of Border Target Operating Model (BTOM) on SMEs and groupage operators; poor information flow and notification to drivers; delays, disruption and damage to fragile goods during the physical inspection process; wholly inadequate driver welfare facilities; the need for expanded opening hours of border control posts; confusing invoicing processes; poor communication between involved agencies, and to logistics and transport providers making enquiries about truck holds; and the need to urgently review and resolve these issues before physical inspections are scaled up to the 100% regime set out under the BTOM."

WHAT DO DO NEXT?

Waiting for a draft SPS Agreement text and participating in the broader conversation about the issues is potentially what most companies will do until the agreement comes into effect. But there are multiple practical steps you can take while we all wait.

➡️ Prepare for Audits

Ensure that all agri-food products, processes, and supply chains meet or exceed EU SPS standards. Establish procedures and record-keeping systems that demonstrate compliance with EU regulations in the event of audits or inspections.

➡️ Update Customs Declarations

Revise documentation templates and software to reflect the reduced certification requirements under the proposed rules. Leverage tools like GVMS for pre-lodging customs declarations, IPAFFS for importing animals and products, and TRACES NT for EU-side tracking.

➡️ Train Staff

Train Staff. Provide training for regulatory, logistics, and customs staff on dynamic alignment, traceability, and record-keeping practices to ensure compliance and effective management.

➡️ Engage Suppliers

Communicate with EU and UK suppliers and partners to confirm they are aware of the new regulations and prepared to adapt accordingly.

➡️ Revisit Your NI Strategy

For companies with routes between Great Britain and Northern Ireland, the upcoming SPS Agreement presents an opportunity to streamline operations and expand their business.

THE BOTTOM LINE

The UK–EU SPS Agreement represents the biggest reset in cross-border food and agricultural logistics since Brexit. If implemented well, it could usher in a new era of low-friction, lower-cost trade. However, the benefits come with strings attached: regulatory alignment, unresolved infrastructure issues, and a still uncertain timetable. For logistics providers, this is not a time for complacency. It's a time to prepare, digitise, and adapt.

Keeping up with constantly evolving regulatory changes can be a daunting task. Therefore, having a trusted logistics partner can help tremendously, elevating your business to the next level. Whether you need help understanding new regulations, such as the SPS Agreement, navigating shipping via ocean, air, rail, or road freight, or dealing with customs and tax compliance, professionals at KATA Global Logistics are here to assist you. We offer tailored solutions that adapt to shifting market needs, focusing on efficiency, cost-effectiveness, and customer satisfaction.

Contact KATA today, and navigate SPS changes with ease!