The Labour government is set to announce the discontinuation of a Brexit policy mandating "Not for EU" labels on food products sold throughout Great Britain. This decision, expected to be confirmed on Monday, comes amidst substantial opposition from the business sector, which has criticized the policy for its negative impact on consumer appeal and the added financial burden on manufacturers, as well as its detrimental effect on food exports.
Originally, this policy, a legacy of the previous Conservative government, would have required meat and dairy products in the UK to bear these labels starting from October 1 of this year, expanding to include fruits, vegetables, and fish by July of the following year. Although these labeling requirements are already in effect in Northern Ireland as part of the Windsor Framework agreement with the EU—to prevent goods from being transferred to the Republic of Ireland, an EU member—the extension of this policy to the wider UK market has been met with criticism for its excessive application of the Brexit agreement.
Despite the reversal of the imminent October deadline, officials have not dismissed the possibility of reintroducing the policy should future analysis indicate negative impacts on the supply chain to Northern Ireland. This development aligns with reports from POLITICO over the summer, suggesting a reevaluation of the policy by the new Labour government after significant lobbying efforts from the food and drink industry.
The industry's pushback included a plea for either an immediate withdrawal of the policy or, at the very least, a six-month moratorium to allow for further consideration, expressing frustration over the uncertainty it caused. Furthermore, the Labour government is exploring a veterinary or SPS agreement with the EU, aiming for a "reset" in relations that might negate the need for such labels. Industry bodies have argued that the labeling policy conflicts with the government's objectives of fostering closer ties with the EU, especially concerning SPS controls which have been a source of friction in trade between Great Britain and Northern Ireland.
In response to these developments, a government spokesperson emphasized ongoing deliberations over the feedback from a recent consultation on the UK-wide labeling and reiterated the commitment to ensuring the free movement of goods to Northern Ireland while engaging with businesses to address their concerns.
Source: Politico