The British Ports Association (BPA) acknowledges the UK-EU agreement announced at a London summit, aiming to establish a common SPS (Sanitary and Phytosanitary) area to streamline trade between the UK and EU. However, the BPA is advocating for compensation for ports facing financial losses due to now redundant border infrastructure.
Ports have invested over £100m in border control posts, constructed rapidly under post-Brexit regulations during a period of high construction costs. Despite these investments, operators have not recouped expenses from traders, as government border checks were not implemented at anticipated levels. The new framework agreement, which anticipates a common SPS area, suggests that capital and operational costs, including opportunity costs, may remain unrecovered. Consequently, the BPA urges the government to address this financial gap.
The agreement is expected to align food standards, potentially eliminating the need for most cross-border checks at Border Control Posts. Richard Ballantyne, Chief Executive of the BPA, representing ports facilitating 86% of the UK's trade, including the majority handling EU traffic, stated: "We welcome a new common SPS area that will lower barriers to trade. There is a long way to go in agreeing on the details and getting arrangements in place, but we hope this will be the foundation of a longer-term partnership with the EU."
Ballantyne also highlighted the financial impact: "This agreement means that many new border control posts that were built at a cost of over £120m to industry to manage checks that never fully materialised are now likely to become obsolete. Government should cover the full costs of these white elephants and put this episode behind us."
Source: BPA