The UK-US trade deal has of course been applauded for opening up access to British and American beef but disappointment has also ensued because the overwhelming majority of food was excluded.
Both sides have pledged, however, to continue talks to remove wider tax barriers to trade under the US-UK Economic Prosperity Deal (EPD) enthusiastically announced late yesterday (8 May) by Prime Minister Sir Keir Starmer and tariff-protagonist President Donald Trump.
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Beef imported and exported from either side of the Atlantic was the welcome component for the UK and US food sectors arising from the initial EPD salvo – albeit restricted to a tariff-free quota system – in what essentially is an agreement to appease players in the automotive and steel industries.
On the UK side, the government has agreed to drop a 20% tariff on US beef imports up to 1,000 metric tonnes (mt), according to a statement from the UK Department for Business and Trade (DBT).
And “there will be no weakening of UK food standards on imports”, the DBT said, addressing concerns in the farming community around the potential flood of hormone-added beef from the US.
Additionally, and subject to clarification by the DBT, a further 13,000 mt of US beef will be allowed in tariff free under what the government described as a “preferential duty-free quota”.
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By GlobalDataThe DBT added: “In return, the United States will reallocate to the United Kingdom 13,000 mt of its existing ‘other countries’ tariff rate quota (TRQ) for beef.”
Just Food has asked the DBT for clarification on the tariff-free quotas.
In the meantime, all other UK-produced foods exported to the US are subject to the 10% tariff imposed by Trump in April.
The National Cattlemen’s Beef Association (NCBA) in the US applauded Trump in his efforts in “fighting for American cattle producers”.
“With this trade deal, President Trump has delivered a tremendous win for American family farmers and ranchers,” NCBA president Buck Wehrbein said in a statement.
“For years, American cattle producers have seen the United Kingdom as an ideal partner for trade. Between our countries’ shared history, culture, and their desire for high-quality American beef, securing a trade agreement is a natural step forward.”
Equally, the EPD was welcomed by the UK’s National Farmers Union (NFU). However, the industry association expressed some concern that the UK agriculture sector was shouldering the burden as the trade agreement also provides the US with a duty-free quota on ethanol up to 1.4 billion liters.
Ethanol concerns
NFU president Tom Bradshaw said: “We appreciate the government’s efforts in listening to our concerns, particularly around maintaining high standards, protecting sensitive agricultural sectors and securing reciprocal access for beef.
“For several years, we’ve campaigned with the UK’s agricultural attachés in Washington for market access for British beef, a product globally respected for its quality and strong environmental credentials. These efforts have contributed to enabling the UK government to secure ring-fenced access for British beef exports to the US.”
However, Bradshaw added the inclusion of a “significant volume of bioethanol” in the EPD “raises concerns for British arable farmers”.
He explained: “Our biggest concern is that two agricultural sectors have been singled out to shoulder the heavy burden of the removal of tariffs for other industries in the economy.
“While we understand this, we also know that today is the start, not the end, of a process and UK agriculture cannot continue to shoulder such imbalances in future negotiations.”
There is an understanding in the EPD that the agreement can be extended. Both the UK and the US plan to cut tariff rates on a “preferential basis on a range of originating goods”, according to yesterday’s DBT statement.
Those future talks will aim to “enhance agricultural market access” and at the same time “strengthen bilateral agricultural trade”.
However, the UK and the US “affirm that imported food and agricultural goods must comply with the importing country’s sanitary and phytosanitary (SPS) standards and other mutually agreed standards”.
UK beef security
The British Meat Processors Association (BMPA) also expressed some concerns around UK food security as the country becomes “more reliant” on imported beef amid what it said is a “growing shortage of livestock”.
Strict controls need to be applied to the quantities of beef imported to “avoid damaging our domestic meat and livestock industry”, BMPA CEO Nick Allen said in a statement.
“The issue for the British meat industry is less about how much beef and more about what kind of beef is allowed in,” Allen added.
“It’s certain that US exporters will concentrate on the high value, premium-end of the market by sending cuts like striploins to the UK. To illustrate the impact this could have: 13,000 tonnes of striploins represents approximately 30% of that same cut we produce domestically.”
Reciprocal concerns were not, however, voiced by the American Farm Bureau Federation (AFBF), which sought to assuage any misconceptions over the safety and quality of US-reared beef.
“America’s farmers and ranchers grow the safest and most affordable food in the world. We’re encouraged by progress to create market opportunities for farmers,” AFBF president Zippy Duvall said in a statement welcoming the UK-US trade agreement.
“We urge the administration to build on this success to pursue more trade agreements, and resolve current disputes, so farmers can continue to feed families here at home and overseas.
“We have long advocated for new trade deals, and this is an important first step… More work is needed, however, to remove the arbitrary barriers that have excluded American-grown food from grocery stores in the UK.”
From the UK’s perspective, that was a view shared by the industry body the Food and Drink Federation (FDF), which also applauded the trade deal but urged more dialogue to secure access to the US for more British food.
“There is obviously still the question of the 10% tariff that continues to apply to food and drink exports. We hope that this deal creates the space and momentum for continued discussions about removing those tariffs too,” FDF CEO Karen Betts said.
She added: “The US is UK food and drink’s third-biggest export market, with £2.7bn ($3.5bn) worth of goods exported there in 2024, many of which are produced by small and medium sized businesses.
“Government can make a real difference here by providing greater practical guidance and support to help more food and drink businesses find new customers abroad.”
Meanwhile, Salmon Scotland urged the UK government to secure more access to the US by negotiating for the removal of tariff barriers in what it said is the second-largest export destination for Scottish salmon, with sales last year of £225m.
“[The] US-UK deal should be seen as a staging post – not the destination – on the path to reducing trade barriers, securing jobs in Scotland, and driving economic growth,” Salmon Scotland CEO Tavish Scott said.
“The 10% tariff on exports to the US remains a barrier, and we want to see it removed.”
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