The UK-US commerce deal has after all been applauded for opening up entry to British and American beef however disappointment has additionally ensued as a result of the overwhelming majority of meals was excluded.
Each side have pledged, nevertheless, to proceed talks to take away wider tax limitations to commerce beneath the US-UK Financial Prosperity Deal (EPD) enthusiastically introduced late yesterday (8 Might) by Prime Minister Sir Keir Starmer and tariff-protagonist President Donald Trump.
Beef imported and exported from both facet of the Atlantic was the welcome element for the UK and US meals sectors arising from the preliminary EPD salvo – albeit restricted to a tariff-free quota system – in what primarily is an settlement to appease gamers within the automotive and metal industries.
On the UK facet, the federal government has agreed to drop a 20% tariff on US beef imports as much as 1,000 metric tonnes (mt), in line with a press release from the UK Division for Enterprise and Commerce (DBT).
And “there will likely be no weakening of UK meals requirements on imports”, the DBT stated, addressing considerations within the farming group across the potential flood of hormone-added beef from the US.
Moreover, and topic to clarification by the DBT, an additional 13,000 mt of US beef will likely be allowed in tariff free beneath what the federal government described as a “preferential duty-free quota”.
The DBT added: “In return, america will reallocate to the UK 13,000 mt of its present ‘different international locations’ tariff price quota (TRQ) for beef.”
Simply Meals has requested the DBT for clarification on the tariff-free quotas.
Within the meantime, all different UK-produced meals exported to the US are topic to the ten% tariff imposed by Trump in April.
The Nationwide Cattlemen’s Beef Affiliation (NCBA) within the US applauded Trump in his efforts in “preventing for American cattle producers”.
“With this commerce deal, President Trump has delivered an amazing win for American household farmers and ranchers,” NCBA president Buck Wehrbein stated in a press release.
“For years, American cattle producers have seen the UK as a super companion for commerce. Between our international locations’ shared historical past, tradition, and their need for high-quality American beef, securing a commerce settlement is a pure step ahead.”
Equally, the EPD was welcomed by the UK’s Nationwide Farmers Union (NFU). Nevertheless, the business affiliation expressed some concern that the UK agriculture sector was shouldering the burden because the commerce settlement additionally gives the US with a duty-free quota on ethanol as much as 1.4 billion liters.
Ethanol considerations
NFU president Tom Bradshaw stated: “We admire the federal government’s efforts in listening to our considerations, significantly round sustaining excessive requirements, defending delicate agricultural sectors and securing reciprocal entry for beef.
“For a number of years, we’ve campaigned with the UK’s agricultural attachés in Washington for market entry for British beef, a product globally revered for its high quality and robust environmental credentials. These efforts have contributed to enabling the UK authorities to safe ring-fenced entry for British beef exports to the US.”
Nevertheless, Bradshaw added the inclusion of a “important quantity of bioethanol” within the EPD “raises considerations for British arable farmers”.
He defined: “Our greatest concern is that two agricultural sectors have been singled out to shoulder the heavy burden of the removing of tariffs for different industries within the financial system.
“Whereas we perceive this, we additionally know that as we speak is the beginning, not the tip, of a course of and UK agriculture can’t proceed to shoulder such imbalances in future negotiations.”
There may be an understanding within the EPD that the settlement will be prolonged. Each the UK and the US plan to chop tariff charges on a “preferential foundation on a spread of originating items”, in line with yesterday’s DBT assertion.
These future talks will purpose to “improve agricultural market entry” and on the similar time “strengthen bilateral agricultural commerce”.
Nevertheless, the UK and the US “affirm that imported meals and agricultural items should adjust to the importing nation’s sanitary and phytosanitary (SPS) requirements and different mutually agreed requirements”.
UK beef safety
The British Meat Processors Affiliation (BMPA) additionally expressed some considerations round UK meals safety because the nation turns into “extra reliant” on imported beef amid what it stated is a “rising scarcity of livestock”.
Strict controls have to be utilized to the portions of beef imported to “keep away from damaging our home meat and livestock business”, BMPA CEO Nick Allen stated in a press release.
“The difficulty for the British meat business is much less about how a lot beef and extra about what sort of beef is allowed in,” Allen added.
“It’s sure that US exporters will focus on the excessive worth, premium-end of the market by sending cuts like striploins to the UK. As an example the affect this might have: 13,000 tonnes of striploins represents roughly 30% of that very same reduce we produce domestically.”
Reciprocal considerations weren’t, nevertheless, voiced by the American Farm Bureau Federation (AFBF), which sought to assuage any misconceptions over the security and high quality of US-reared beef.
“America’s farmers and ranchers develop the most secure and most inexpensive meals on this planet. We’re inspired by progress to create market alternatives for farmers,” AFBF president Zippy Duvall stated in a press release welcoming the UK-US commerce settlement.
“We urge the administration to construct on this success to pursue extra commerce agreements, and resolve present disputes, so farmers can proceed to feed households right here at house and abroad.
“Now we have lengthy advocated for brand spanking new commerce offers, and this is a crucial first step… Extra work is required, nevertheless, to take away the arbitrary limitations which have excluded American-grown meals from grocery shops within the UK.”
From the UK’s perspective, that was a view shared by the business physique the Meals and Drink Federation (FDF), which additionally applauded the commerce deal however urged extra dialogue to safe entry to the US for extra British meals.
“There may be clearly nonetheless the query of the ten% tariff that continues to use to foods and drinks exports. We hope that this deal creates the area and momentum for continued discussions about eradicating these tariffs too,” FDF CEO Karen Betts stated.
She added: “The US is UK foods and drinks’s third-biggest export market, with £2.7bn ($3.5bn) price of products exported there in 2024, lots of that are produced by small and medium sized companies.
“Authorities could make an actual distinction right here by offering better sensible steerage and assist to assist extra foods and drinks companies discover new prospects overseas.”
In the meantime, Salmon Scotland urged the UK authorities to safe extra entry to the US by negotiating for the removing of tariff limitations in what it stated is the second-largest export vacation spot for Scottish salmon, with gross sales final yr of £225m.
“[The] US-UK deal must be seen as a staging put up – not the vacation spot – on the trail to lowering commerce limitations, securing jobs in Scotland, and driving financial development,” Salmon Scotland CEO Tavish Scott stated.
“The ten% tariff on exports to the US stays a barrier, and we wish to see it eliminated.”
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The UK-US commerce deal has after all been applauded for opening up entry to British and American beef however disappointment has additionally ensued as a result of the overwhelming majority of meals was excluded.
Each side have pledged, nevertheless, to proceed talks to take away wider tax limitations to commerce beneath the US-UK Financial Prosperity Deal (EPD) enthusiastically introduced late yesterday (8 Might) by Prime Minister Sir Keir Starmer and tariff-protagonist President Donald Trump.
Beef imported and exported from both facet of the Atlantic was the welcome element for the UK and US meals sectors arising from the preliminary EPD salvo – albeit restricted to a tariff-free quota system – in what primarily is an settlement to appease gamers within the automotive and metal industries.
On the UK facet, the federal government has agreed to drop a 20% tariff on US beef imports as much as 1,000 metric tonnes (mt), in line with a press release from the UK Division for Enterprise and Commerce (DBT).
And “there will likely be no weakening of UK meals requirements on imports”, the DBT stated, addressing considerations within the farming group across the potential flood of hormone-added beef from the US.
Moreover, and topic to clarification by the DBT, an additional 13,000 mt of US beef will likely be allowed in tariff free beneath what the federal government described as a “preferential duty-free quota”.
The DBT added: “In return, america will reallocate to the UK 13,000 mt of its present ‘different international locations’ tariff price quota (TRQ) for beef.”
Simply Meals has requested the DBT for clarification on the tariff-free quotas.
Within the meantime, all different UK-produced meals exported to the US are topic to the ten% tariff imposed by Trump in April.
The Nationwide Cattlemen’s Beef Affiliation (NCBA) within the US applauded Trump in his efforts in “preventing for American cattle producers”.
“With this commerce deal, President Trump has delivered an amazing win for American household farmers and ranchers,” NCBA president Buck Wehrbein stated in a press release.
“For years, American cattle producers have seen the UK as a super companion for commerce. Between our international locations’ shared historical past, tradition, and their need for high-quality American beef, securing a commerce settlement is a pure step ahead.”
Equally, the EPD was welcomed by the UK’s Nationwide Farmers Union (NFU). Nevertheless, the business affiliation expressed some concern that the UK agriculture sector was shouldering the burden because the commerce settlement additionally gives the US with a duty-free quota on ethanol as much as 1.4 billion liters.
Ethanol considerations
NFU president Tom Bradshaw stated: “We admire the federal government’s efforts in listening to our considerations, significantly round sustaining excessive requirements, defending delicate agricultural sectors and securing reciprocal entry for beef.
“For a number of years, we’ve campaigned with the UK’s agricultural attachés in Washington for market entry for British beef, a product globally revered for its high quality and robust environmental credentials. These efforts have contributed to enabling the UK authorities to safe ring-fenced entry for British beef exports to the US.”
Nevertheless, Bradshaw added the inclusion of a “important quantity of bioethanol” within the EPD “raises considerations for British arable farmers”.
He defined: “Our greatest concern is that two agricultural sectors have been singled out to shoulder the heavy burden of the removing of tariffs for different industries within the financial system.
“Whereas we perceive this, we additionally know that as we speak is the beginning, not the tip, of a course of and UK agriculture can’t proceed to shoulder such imbalances in future negotiations.”
There may be an understanding within the EPD that the settlement will be prolonged. Each the UK and the US plan to chop tariff charges on a “preferential foundation on a spread of originating items”, in line with yesterday’s DBT assertion.
These future talks will purpose to “improve agricultural market entry” and on the similar time “strengthen bilateral agricultural commerce”.
Nevertheless, the UK and the US “affirm that imported meals and agricultural items should adjust to the importing nation’s sanitary and phytosanitary (SPS) requirements and different mutually agreed requirements”.
UK beef safety
The British Meat Processors Affiliation (BMPA) additionally expressed some considerations round UK meals safety because the nation turns into “extra reliant” on imported beef amid what it stated is a “rising scarcity of livestock”.
Strict controls have to be utilized to the portions of beef imported to “keep away from damaging our home meat and livestock business”, BMPA CEO Nick Allen stated in a press release.
“The difficulty for the British meat business is much less about how a lot beef and extra about what sort of beef is allowed in,” Allen added.
“It’s sure that US exporters will focus on the excessive worth, premium-end of the market by sending cuts like striploins to the UK. As an example the affect this might have: 13,000 tonnes of striploins represents roughly 30% of that very same reduce we produce domestically.”
Reciprocal considerations weren’t, nevertheless, voiced by the American Farm Bureau Federation (AFBF), which sought to assuage any misconceptions over the security and high quality of US-reared beef.
“America’s farmers and ranchers develop the most secure and most inexpensive meals on this planet. We’re inspired by progress to create market alternatives for farmers,” AFBF president Zippy Duvall stated in a press release welcoming the UK-US commerce settlement.
“We urge the administration to construct on this success to pursue extra commerce agreements, and resolve present disputes, so farmers can proceed to feed households right here at house and abroad.
“Now we have lengthy advocated for brand spanking new commerce offers, and this is a crucial first step… Extra work is required, nevertheless, to take away the arbitrary limitations which have excluded American-grown meals from grocery shops within the UK.”
From the UK’s perspective, that was a view shared by the business physique the Meals and Drink Federation (FDF), which additionally applauded the commerce deal however urged extra dialogue to safe entry to the US for extra British meals.
“There may be clearly nonetheless the query of the ten% tariff that continues to use to foods and drinks exports. We hope that this deal creates the area and momentum for continued discussions about eradicating these tariffs too,” FDF CEO Karen Betts stated.
She added: “The US is UK foods and drinks’s third-biggest export market, with £2.7bn ($3.5bn) price of products exported there in 2024, lots of that are produced by small and medium sized companies.
“Authorities could make an actual distinction right here by offering better sensible steerage and assist to assist extra foods and drinks companies discover new prospects overseas.”
In the meantime, Salmon Scotland urged the UK authorities to safe extra entry to the US by negotiating for the removing of tariff limitations in what it stated is the second-largest export vacation spot for Scottish salmon, with gross sales final yr of £225m.
“[The] US-UK deal must be seen as a staging put up – not the vacation spot – on the trail to lowering commerce limitations, securing jobs in Scotland, and driving financial development,” Salmon Scotland CEO Tavish Scott stated.
“The ten% tariff on exports to the US stays a barrier, and we wish to see it eliminated.”
Navigate the shifting tariff panorama with real-time information and market-leading evaluation.
Request a free demo for GlobalData’s Strategic Intelligence right here.
