Why did the food industry oppose ‘not for EU’ labelling in GB?
The UK government has announced it plans to scrap the ‘not for EU’ food labelling after backlash from businesses.
The food labels had been instituted as part of the ‘Windsor Framework,’ drawn up by the previous Conservative government to ensure that goods, including food products, shipped to Northern Ireland and destined for the Republic of Ireland, an EU member state, received proper regulatory checks. Due to the 1998 Good Friday Agreement, Northern Ireland retains a soft border with the Republic of Ireland.
Food products across the UK would originally have had to carry the label from today. However, after heavy lobbying from food and drink businesses, the new UK Labour government has reversed the decision, albeit with the potential to reinstate it at a future date if it sees a detrimental impact on products with the label in Northern Ireland.
How did the Windsor Framework lead to the labelling?
In 2023, the UK and the European Union signed the Windsor Framework.
The Windsor Framework was intended to solve the trade problems created by the soft border between Northern Ireland and the Republic of Ireland following Brexit, where customs checks do not take place and, in theory, UK products could enter the EU without conforming to EU regulatory standards.
Under the framework, goods going into Northern Ireland that will stay in the UK will go through a ‘green lane’ and not be checked, whereas those which may end up in the EU will go into a ‘red lane’ and be checked according to EU standards.
The command paper ‘Safeguarding the Union’, published after the framework was signed, specified that products sent from Great Britain to Northern Ireland that were not intended for sale in the EU, and thus should not be checked for compliance with EU regulations, must be labelled as ‘not for EU.’ The paper promised that these rules would be applied to agrifood products across the UK to avoid a disincentive for these products to be sent to Northern Ireland.
Why have food and beverage companies opposed the labelling?
The postponement of the labelling comes after opposition from industry and, The Grocer reported, warnings that it would push up food prices for consumers.
Earlier this year, the Provision Trade Federation, a food industry trade organisation, along with the National Farmers Union (NFU) and the Chilled Food Association, sent ministers a letter requesting either a halt or six-month postponement to the decision, in order to allow time for ‘deliberation.’
According to the Provision Trade Federation, the label would act as a disincentive to supply the same products to Northern Ireland and the Republic of Ireland, due to the greater cost implemented by labelling the product in two different ways. Furthermore, it suggested, it could disincentivise food companies sending products to Great Britain rather than Northern Ireland, as the latter will have access to food exported from the EU via the Republic of Ireland without ‘not for EU’ labelling.
The organisation predicts that extra costs incurred for its member businesses could be between 250,000 GBP to between 15-20 million GBP, and that extra costs could be an existential threat for some SMEs.
Many food companies also said that the lack of clarity on the labelling had left them in ‘limbo.’ Some, such as dairy company Arla, had started implementing the changes already, while others waited on a final government decision.
