Morrisons says UK-EU deal will ‘ease’ value stress | EUROtoday

The boss of one of many UK’s largest grocery store chains the UK-EU commerce deal will cut back stress on costs.

The deal signed on Monday units out post-Brexit relations on areas together with fishing rights, farming exports, commerce, journey, and defence.

Major enterprise teams referred to as the settlement a “leap forward” which made “genuine progress”, whereas Morrisons’ chief govt Rami Baitiéh mentioned it could “ease a source of pressure on food prices”.

However, others enterprise teams mentioned extra nonetheless must be completed to assist UK companies and the high quality print of the deal will likely be essential.

Mr Baitiéh mentioned: “Sweeping away trade barriers with the EU will remove cost, complexity and delay in food imports from the continent”.

He added: “As a fresh food manufacturer we also welcome the prospect of key export markets for our excellent meat and fish becoming more accessible.”

A spokesperson for Asda mentioned the settlement “has the potential to significantly reduce costs and bureaucracy both for the fresh produce we import from the EU and the goods we move every day to our customers in Northern Ireland.”

The spokesperson added that they hoped the deal could be finalised “as soon as possible,” in an effort to “deliver the maximum possible benefits for our customers and household budgets in every part of the UK.”

Some research counsel that larger crimson tape on commerce has contributed to increased costs for foodstuffs imported to the UK from the EU in recent times.

But whereas retailers are amongst these welcoming this deal, it isn’t assured that any financial savings in prices will likely be handed on.

Price reductions would rely upon suppliers passing on financial savings.

Food costs within the UK have surged in recent times, which has put stress on the budgets of many households.

Food inflation, which measures value rises over a time period, peaked at 19.2% in 2023, which was the very best annual charge seen for greater than 45 years.

The charge has since fallen, in line with the Office for National Statistics (ONS), with the most recent figures displaying meals inflation was 3% within the 12 months to March.

But falling inflation doesn’t imply costs are coming down, however fairly that they’re rising at a slower tempo.

The Confederation of British Industry (CBI), the British Chambers of Commerce (BCC), UK Hospitality and the Food and Drink Federation (FDF) are among the many enterprise teams which have praised the UK-EU deal.

Rain Newton-Smith, chief govt of the CBI, mentioned: “After the turbulence of the last decade, today’s summit marks a leap forward in the EU-UK relationship.”

Shevaun Haviland, director normal of the BCC, mentioned: “Today’s summit marks a turning point in UK/EU relations which puts our trade relationship at the forefront of our partnership going forward.”

However, he added “we must not stop here”.

“This agreement must be the foundation on which we aspire to build a much stronger business relationship going forward.”

Karen Betts, chief govt of the Food and Drink Federation, mentioned the commerce physique was happy to see the deal, however urged the federal government to “work closely with industry on the detail”.

“A high-quality agreement will have clear benefits for consumers and businesses,” she mentioned.

Kate Nicholls, chief govt of UK Hospitality, added the settlement was optimistic information and would “help to further increase access to high-quality, affordable food and drink for business and consumers alike”.