Food industry bodies have raised the prospect of legal action against the government, following proposals for new labelling requirements on all UK-bound meat and dairy products, which they say will add unacceptable costs.
Under the initial Windsor Framework, ‘Not for EU’ labels would have been required on goods produced in Great Britain and bound for Northern Ireland. However, following a recent update to the deal, this is now set to cover all UK products intended for domestic sale.
The Guardian reports that one organisation is already consulting with lawyers to counter the proposals.
Increased costs and disruption
The Food and Drink Federation (FDF) has estimated that new labelling rules could cost the industry £250m a year.
In a letter to cabinet office minister, Steve Baker, the Federation warned these costs would hit exports and counter the progress made so far to reduce food inflation. It also stated the UK could become less attractive to overseas investors, with many having already paused planned projects.
This sentiment was echoed by Institute of Export & International Trade (IOE&IT) trade and customs consultant, Laura Williams.
She said: “The biggest feedback from our members about additional labelling is that putting further requirements on UK businesses goes against promises made to the food industry.”
While several bodies, such as Food and Drink Exporters Association and Provision Trade Federation said that legal avenues were being explored, they also said their preferred solution would be through non-legal channels, with one unnamed body wanting “to work with government to find sensible alternatives”.
The government has insisted the labelling measures will protect the Northern Irish market, levelling the playing field by ensuring producers aren’t disincentivised from selling their goods to Northern Ireland, specifically.
‘Not for EU’ expansion
The labelling requirements originate in the Windsor Framework, the updated agreement between the EU and UK concluded in 2023 as part of attempts to appease Northern Ireland’s unionist parties, who had rejected the initial post-Brexit deal – the Northern Ireland Protocol. The rejection of the Protocol led to a protracted absence of devolved government in Northern Ireland.
Under the Windsor Framework, goods bound for Northern Ireland from Britain can bypass more stringent customs rules imposed by the EU, on the condition that they’re labelled ‘not for EU’. This was designed to ease trade friction and answer the concerns of the Democratic Unionist Party (DUP) in particular.
However, having failed on the latter count, expanding labelling requirements to all UK products intended for domestic sales is part of an updated deal reached between the UK government and DUP in January, to allow for the return of devolved government at Stormont.
DBT critique
This follows a ministerial skirmish over labelling between Steve Barclay and Kemi Badenoch, secretaries of state for the Department for Environment, Food and Rural Affairs (Defra) and the Department for Business and Trade (DBT), respectively.
Badenoch wrote to Barclay last month, stating that she was “very concerned” about the cost implications of proposed labelling to tout the high welfare standards of UK produce.
Telling Barclay that the plan could disadvantage both domestic producers and the UK’s trading partners, she advocated for analysis of the economic consequences and a public consultation before any further steps are taken.