The boss of one of the UK’s biggest supermarket chains the UK-EU trade deal will reduce pressure on prices.
The deal signed on Monday sets out post-Brexit relations on areas including fishing rights, farming exports, trade, travel, and defence.
Major business groups called the agreement a “leap forward” which made “genuine progress”, while Morrisons’ chief executive Rami Baitiéh said it would “ease a source of pressure on food prices”.
However, others business groups said more still needs to be done to help UK businesses and the fine print of the deal will be crucial.
Mr Baitiéh said: “Sweeping away trade barriers with the EU will remove cost, complexity and delay in food imports from the continent”.
He added: “As a fresh food manufacturer we also welcome the prospect of key export markets for our excellent meat and fish becoming more accessible.”
A spokesperson for Asda said the agreement “has the potential to significantly reduce costs and bureaucracy both for the fresh produce we import from the EU and the goods we move every day to our customers in Northern Ireland.”
The spokesperson added that they hoped the deal would be finalised “as soon as possible,” in order to “deliver the maximum possible benefits for our customers and household budgets in every part of the UK.”
Some studies suggest that greater red tape on trade has contributed to higher prices for foodstuffs imported to the UK from the EU in recent years.
But while retailers are among those welcoming this deal, it is not guaranteed that any savings in costs will be passed on.
Price reductions would depend on suppliers passing on savings.
Food prices in the UK have surged in recent years, which has put pressure on the budgets of many households.
Food inflation, which measures price rises over a period of time, peaked at 19.2% in 2023, which was the highest annual rate seen for more than 45 years.
The rate has since fallen, according to the Office for National Statistics (ONS), with the latest figures showing food inflation was 3% in the 12 months to March.
But falling inflation does not mean prices are coming down, but rather that they are rising at a slower pace.
The Confederation of British Industry (CBI), the British Chambers of Commerce (BCC), UK Hospitality and the Food and Drink Federation (FDF) are among the business groups that have praised the UK-EU deal.
Rain Newton-Smith, chief executive of the CBI, said: “After the turbulence of the last decade, today’s summit marks a leap forward in the EU-UK relationship.”
Shevaun Haviland, director general of the BCC, said: “Today’s summit marks a turning point in UK/EU relations which puts our trade relationship at the forefront of our partnership going forward.”
However, he added “we must not stop here”.
“This agreement must be the foundation on which we aspire to build a much stronger business relationship going forward.”
Karen Betts, chief executive of the Food and Drink Federation, said the trade body was pleased to see the deal, but urged the government to “work closely with industry on the detail”.
“A high-quality agreement will have clear benefits for consumers and businesses,” she said.
Kate Nicholls, chief executive of UK Hospitality, added the agreement was positive news and would “help to further increase access to high-quality, affordable food and drink for business and consumers alike”.
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