FDF response to new trade arrangements with the EU, US & India

FDF response to a new EU trade arrangement

Karen Betts, Chief Executive, The Food and Drink Federation (FDF) said:

"Trade with the EU is incredibly important to UK food and drink manufacturers.  Europe is our single biggest customer, and most of the food and drink we import – from ingredients to finished products – comes from Europe too. However, trade in both directions has become complex and challenging.  UK food and drink exports to Europe have fallen by a third since 2019 and businesses continue to face challenges and delays with imports.

"We’re pleased to see today’s announcement of a much closer UK-EU trading relationship, which acknowledges our shared high standards in food and drink. A high-quality agreement will have clear benefits for consumers and businesses. However, the government must continue to work closely with industry on the detail and ensure the UK is able to influence EU decision making where this impacts British businesses and competitiveness, particularly where the UK aligns with EU rules."

FDF responds to a new economic agreement with the US

Karen Betts, Chief Executive, The Food and Drink Federation (FDF), said:

"This is very positive news for the UK economy, and to be welcomed. There is obviously still the question of the 10% tariff that continues to apply to food and drink exports.  We hope that this deal creates the space and momentum for continued discussions about removing those tariffs too.

"The US is UK food and drink’s third biggest export market, with £2.7bn worth of goods exported there in 2024, many of which are produced by small and medium sized businesses. Government can make a real difference here by providing greater practical guidance and support to help more food and drink businesses find new customers abroad."

Background

• In 2024 the UK exported £2.7bn worth of food and drinks to the US (Source: FDF Trade Snapshot)
• This includes exporting 1 billion cups of tea and 1 billion biscuits to the US in 2024

FDF welcomes the government’s announcement of a new Free Trade Deal with India

Karen Betts, Chief Executive, The Food and Drink Federation, said:

"We’re delighted the government has finalised its new Free Trade Agreement with India, which is testament to the hard work of the negotiating team. This is very welcome news for UK food and drink manufacturers, particularly for soft drinks, chocolates, biscuits, crispbreads and crackers, which will now all benefit from tariff-free access to one of the fastest growing markets in the world. The UK exported nearly £300m worth of food and drink to India in 2024, so this FTA represents a significant opportunity for British food and soft drinks.

"The FTA will also provide UK manufacturers with greater access to ingredients produced in India, strengthening the supply chain resilience and competitiveness for our sector. We look forward to working with government to ensure that the full benefits of the agreement are realised across a wide range of UK food and drink manufacturers."

Background

In 2024 £293.8m of food and drink was exported from the UK to India, this was an increase of 14.6% on the previous year. Source: FDF Trade Snapshot 2024.