UK-EU Trade and Cooperation Agreement "Domestic Advisory Group" releases 2024-25 report
The Domestic Advisory Group (DAG), a consultative body which advises the Government on the operation of the UK-EU Trade and Cooperation Agreement, has released its policy priority report.
AIC sits on the DAG and has advocated for a number of AIC Member priorities that have been included in the report publication, including SPS/veterinary issues, regulatory divergence and trade in agricultural goods.
Visit the GOV.UK website for further details of the DAG, and see the background information below.
View the full DAG report on the GOV.UK website.
DAG report
On 25 April, the DAG published its first report which sets out key priorities to improve the implementation and functioning of the Trade and Co-operation Agreement.
The report examines five key areas:
- Trade and Customs
- Level Playing Field and Regulatory Co-operation
- Energy and Climate Change
- Business and Labour Mobility
- Nations and Regions
Under each heading the DAG has identified short, medium and longer actions which could not only improve the functioning of the TCA but also improve UK-EU relations and co-operation.
View the full report on the GOV.UK website.
Summary of key recommendations
For AIC Members, the notable key recommendations from the report are:
- Address Sanitary and Phytosanitary (SPS) issues, including digital health certificates; EU-UK non-harmonisation on health checks; UK Border Target Operating Model (BTOM) operational implementation; food and animal product restrictions. This includes a recommendation that the EU and UK Government should consider the possibility of negotiating, an UK/EU/EFTA SPS zone, which part of the UK (Northern Ireland) is already in. Such a zone could build on the foundations of mutual recognition and equivalence of each others’ regulations.
- To amend the UK-EU TCA agreement to ensure that there is a need for food and feed goods exported to each party’s territories to operate under clear sanitary and phytosanitary requirements. Both the EU and UK should cooperate in ensuring that the requirements placed on exporters are consistent and seek to remove any inconsistencies in interpretation or guidance.
- Provide sufficient customs guidance and training for traders and Border control staff; ensure current and future inter-operability of EU and UK systems, particularly with the introduction of new GB border operations.
- Consider EU Carbon Border Adjustment Mechanism (CBAM) applicability to Northern Ireland and wider Customs reporting requirements into/from GB and EU markets (“The UK and EU should avoid divergence in scope or the creation of new regulatory friction which may affect mutual trade with similar standards and climate ambitions shared by all parties”).
- The UK and EU should cooperate over their respective policies related to deforestation and trade in deforestation risk goods. Respecting each party's autonomy and rights to regulate on this policy within their territories, both parties should work towards mutual recognition and timely implementation of one another’s regulatory approaches to ensure consistency and reduce barriers to trade in the goods under scope.
- In chemicals, The UK should maintain regulatory cooperation with the EU and be enabled access to the EU-REACH database.
Next steps and AIC view
The DAG report will be sent to UK Ministers for review, as well as the respective EU DAG, and the European Commission.
The report is timely in that with a UK General Election and European Elections in 2024, a renewed focus on improving EU-UK relations is entirely possible.
This DAG report provides a clear, on-the-record view from across UK business groups on the failings of current EU-UK trade, and gives a future UK Government a mandate on what to prioritise on UK-EU trade.
At a meeting of the UK DAG on 26 April (pictured below), Nick Thomas-Symonds MP (Labour Shadow Minister) reaffirmed to the group that the Labour Party would seek to negotiate an SPS/veterinary agreement with the EU if they form the next UK Government.
At the next joint EU and UK DAG meeting in summer 2024, the view of the Commission to the UK DAG’s report will be aired. With such a diverse group of organisations represented on the UK DAG, it is welcome that AIC-specific concerns have been included, alongside the policy solutions we are seeking.
Background
The UK-EU Trade and Cooperation Agreement (TCA/the Agreement) provides for the involvement of civil society through the creation of a Domestic Advisory Group (DAG) in advising on the implementation of the Agreement.
The DAG is a consultative body that enables the government to hear from those most affected by the operation of the Agreement. The DAG member organisations discuss progress made in implementing the Agreement and submit their views to the government.
They also discuss implementation issues with the EU DAG in the preparations of the TCA Civil Society Forum (CSF). The CSF brings together UK and EU stakeholders to jointly advise both parties on the implementation of the Agreement.
Membership of the DAG spans all sectors of the economy, including services, automotive, arts and mobility. AIC is one of a handful of organisations representing agriculture.
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