The new trade deal that the UK has negotiated with the EU has been greeted with enthusiasm by leading business groups, including the Federation of Small Businesses, the British Chambers of Commerce and the CBI.
A new deal agreed between the UK and the EU will make exporting much easier and cheaper for food producers, by removing almost all of the routine border checks on animal and plant shipments. After the 21% drop in exports and 7% drop in imports seen since Brexit, the UK will be able to sell various products, such as burgers and sausages, back into the EU again.
The UK and the EU have also agreed to co-operate further on a youth experience scheme - which could see young people able to work and travel freely in Europe again. The government claims the whole package will "help make food cheaper, slash red tape, open up access to the EU market and add nearly £9 billion to the UK economy by 2040."
"Reducing the burdens for SMEs"
Responding to the news, Tina McKenzie, policy chair of the Federation of Small Businesses (FSB), said: "This agreement marks genuine progress by untangling the rules for small exporters of plant and animal products. If British goods can reach European markets with fewer setbacks, that marks real progress. For too long, small businesses have shouldered the burden of unpredictable custom rules and red tape that sap confidence and ambition. Today's agreement brings us a step closer to reducing the burdens for SMEs by clearing the bottleneck at the border, trading fresh produce and more efficient supply chains."
"A leap forward in the EU-UK relationship"
Rain Newton-Smith, chief executive of the CBI, described the summit as a "leap forward in the EU-UK relationship". She said: "Today's deal means firms on both sides of the border will be breathing a sigh of relief following practical commitments to improve regulatory cooperation, bolster defence, and deliver on our mutual net zero ambitions. For businesses in Northern Ireland, today's announcement of an SPS Agreement is a significant win which should facilitate smoother trade between Great Britain and Northern Ireland."
"A long time coming"
Emma Rowland, trade policy advisor at the Institute of Directors (IoD), said: "The reset of relations between the UK and EU has been a long time coming. Our own research shows that an improved trade deal with the EU is seen as one of the top three factors that would help boost UK growth. Today's announcements will provide British businesses with relief that some barriers to trading with our closest and largest trading partner will come down.
"The commitment to address the administrative burden for business is also very welcome. Ensuring tariff-free access for steel products, delivering a veterinary agreement and linking the Emissions Trade Scheme will reduce much of the friction that firms grapple with at the border. Those UK exporters that are currently disincentivised from selling abroad due to red-tape could see opportunities open for growth."
"A turning point in UK/EU relations"
Shevaun Haviland, director general of the British Chambers of Commerce (BCC), said: "Today's summit marks a turning point in UK/EU relations which puts our trade relationship at the forefront of our partnership going forward. A permanent deal to remove unnecessary checks on food and drink exports in both directions is a huge boost; it will cut costs, reduce waste and increase sales.
"The BCC had seven key asks of government going into these negotiations which were based on four years of research and analysis involving thousands of firms. Today's deal is good news on five of those. But we must not stop here, this agreement must be the foundation on which we aspire to build a much stronger business relationship going forward. That can only be of benefit to all our economies."
Written by Rachel Miller.