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The United Kingdom has reached a new agreement with the European Union that is set to significantly ease the movement of food, plant products, and agricultural goods between the two markets—an issue that has long troubled post-Brexit trade.
The deal, which was unveiled Monday by Downing Street, eliminates a wide range of customs checks and bureaucratic controls, aiming to “allow goods to flow freely again” and reduce operational headaches for importers and exporters.
London expects the joint package to deliver close to £9 billion ($12.04 billion) in economic gains by 2040. In the words of government officials, the measures are part of the broader mission to “grow the economy,” particularly through easing trade friction with the UK’s largest trading partner. Since Britain officially departed the EU in 2020, its exports to the bloc have slumped by 21% and imports by 7%—a trend policymakers are now trying to reverse.
The updated rules will remove many of the routine inspections for animal and plant-based goods, which had become a persistent source of delays and logistical challenges. This simplification is expected to not only cut red tape but also help businesses avoid the lengthy lorry queues that have plagued border crossings since 2020.
The agreement is also designed to shield British industries from additional EU carbon taxation by linking the two sides’ emissions trading schemes. This alignment spares U.K. companies from incurring the EU’s carbon border adjustment mechanism, a levy aimed at preventing “carbon leakage” by taxing imports from regions with laxer emissions regulations.
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