Committee publication · Correspondence · 17 July 2025

Correspondence from NFU Cymru to the Chair dated 26 June 2025 relating to the 4 June evidence session

From: Welsh Affairs Committee

Inquiry: Farming in Wales in 2025: Challenges and Opportunities

Summary

NFU Cymru responds to three follow-up questions from the Welsh Affairs Committee's 4 June evidence session on farming challenges. The union confirms that post-Brexit checks and certificates reduced Welsh export competitiveness, particularly in the EU market where Wales is heavily dependent; welcomes the May 2025 UK-EU SPS agreement as a step toward reducing trade friction but notes it is premature to assess its full effectiveness; and expresses cautious concern about dynamic alignment with EU food standards, emphasizing the need to protect UK regulatory autonomy.

Key findings

  • Welsh food and drink exports to the EU reached £813m in 2023 (highest recorded), but export volumes show significant decline since 2019: meat down 33%, dairy and eggs down 20%, attributed partly to post-Brexit non-tariff barriers including customs controls and SPS checks costing up to £185 per consignment.
  • NFU Cymru cautiously welcomes the 19 May UK-EU SPS agreement, which should remove Export Health Certificates and border controls, but states it is premature to assess whether this deal has completely removed all trade barriers facing Welsh exporters.
  • Wales is disproportionately reliant on EU markets (75% of food and drink exports versus 57% UK-wide), making trade friction particularly damaging for perishable agri-food products requiring 'just in time' supply.
  • Dynamic alignment with EU food standards creates a 'significant cost' as the UK commits to future EU rules without voting rights; NFU Cymru seeks clarity on exclusions and urges protection of domestic regulatory decision-making.
  • Non-tariff barriers, unlike tariffs, are complex and difficult to calculate, adding cost and delays that have deterred some EU buyers from sourcing Welsh products in favour of within-EU suppliers.

Tone

Factual

Topics

agriculturetradebrexitexportfood-standards

Key actors

NFU Cymru, Aled Jones, Huw Thomas, Ruth Jones MP, Welsh Affairs Committee, UK Government, European Union

Notable line

… the imposition of third country checks on products entering the EU, from the UK has unquestionably contributed to a challenging period for UK agri- food exports.

Key Quotes

Welsh food and drink exports to the EU were worth £813m in 2023, the highest yearly value recorded by HMRC, with meat and meat products accounting for £280m of this.
NFU Cymru · Answering whether checks and certificates made Welsh goods less attractive to international markets
Meat and meat preparations have declined 33%, whilst dairy products and eggs have fallen by 20%.
NFU Cymru · Demonstrating the volume decline in Welsh agri-food exports to the EU since 2019
… the imposition of third country checks on products entering the EU, from the UK has unquestionably contributed to a challenging period for UK agri- food exports.
NFU Cymru · Attributing export decline to post-Brexit regulatory barriers
NFU Cymru gave a cautious welcome to the outcome of the 19 th May UK-EU summit which should now chart a course to reducing trade friction between the UK and its largest trading partner …
NFU Cymru · Assessing the SPS agreement announced in May 2025
It is still early to say how effective this agreement has been in terms of removing all the barriers to trade.
NFU Cymru · Cautioning that it remains premature to assess the full impact of the SPS deal
… full dynamic alignment comes at a significant cost of the UK committing to future EU rules, in which we will have little say.
NFU Cymru · Expressing concern about the implications of aligning with EU food standards
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Source · parliament.uk record ↗

Correspondence from NFU Cymru to the Chair dated 26 June 2025 relating to the 4 June evidence session | Beyond The Vote | Beyond The Vote