Labour’s new food and farming framework could impact UK economy
Labour’s proposed change to the food and farming framework with the EU could potentially create a £15 billion gap in the UK economy, reports BritPanorama.
Prime Minister Sir Keir Starmer reached an agreement in May with Brussels, and officials are currently negotiating rule changes. Under this framework, the UK will adopt EU food standards and pesticide regulations by the end of the year.
However, the Growth Commission, a policy think tank, warns that such alignment could hinder the UK’s ability to forge trade agreements globally. Chairman Shanker Singham criticized these EU regulations as “growth-destroying,” estimating that they cost member states about £34 billion annually. He asserted that the UK should not align itself with these European standards.
The think tank further stated, “Any alignment to EU SPS regulation would, for example, have a very negative impact on the US-UK relationship.” Singham emphasized the potential risks to the UK’s pharmaceutical sector, describing it as one of the country’s most productive areas threatened by such alignment.
The report highlighted concerns regarding Britain’s role in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, cautioning that the proposed SPS deal might jeopardize trade with member countries like Australia and New Zealand.
According to the Growth Commission, this alignment could represent a “backward and economically harmful move.” In response, a Cabinet Office spokesperson disputed the £15 billion figure, asserting that government analysis suggests a food and drink trade deal could contribute £5.1 billion to the economy while supporting British jobs and reducing bureaucracy.
The debate surrounding the new framework underscores significant tensions in the ongoing discussions about the UK’s post-Brexit trade strategy and its broader implications for economic growth and international partnerships.
As Britain navigates its post-Brexit future, the balance between maintaining European ties and pursuing diverse global trade agreements remains a pivotal and contentious issue.
