The UK and US agreed a trade deal on 8 May which aims to grow the quality and volume of trade between two states as well as make it easier for businesses to operate, invest and trade in both countries.
The deal includes a new reciprocal market access on beef – with UK farmers given a quota for 13,000 metric tonnes. According to the UK government, there will be no weakening of UK food standards on imports, something that farmers and agricultural co-ops had concerns about.
The tariff on ethanol coming into the UK from the US, which is widely used in the manufacturing sector, is also removed under the deal.
“I am delighted our calm approach and proactive engagement with the US has resulted in this deal which cuts tariffs for UK industry and cuts costs for businesses,” said Business and Trade Secretary Jonathan Reynolds, a Labour/Co-op MP.
“Businesses across the country will be glad to see our approach working, but this is only the beginning. We look forward to strengthening our trading relationship with the US through a wider economic deal, which will help us to deliver on our Plan for Change to provide economic stability and make this country fit for the future,” he added.
The National Farmers Union, whose members include agricultural co-ops, said the deal was direct result of tariffs introduced by the US administration in April.
“Since then, we have worked tirelessly on behalf of British agriculture, engaging closely with the UK government to ensure our farmers receive a fair and balanced outcome within this deal and that the public is not exposed to lower standard produce,” NFU President Tom Bradshaw said in a statement.
“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.”
Bradshaw added that the inclusion of a significant volume of bioethanol in the deal raised concerns for British arable farmers.
“We are working through what this means for the viability of the domestic bioethanol production and therefore the potential impact on our members.
“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,” he concluded.
The deal was also welcomed by the USA’s National Council of Farmer Cooperatives (NCFC), which represents agri co-ops’ interests in legislative and regulatory affairs.
President Chuck Conner told Oklahoma Farm Report his organisation looked forward to reviewing the details once the text of the agreement became available.
He added that the sector expected “any future trade agreements with other countries secure meaningful new market access to help offset losses in other export markets”. NCFC stands ready to work with the administration to ensure that the final agreement delivers tangible results for the country’s agricultural sector, he added.
Asked to comment on the new US-UK trade deal Michaela Jay, insight manager at the Institute of Grocery Distribution (IGD Retail), explained that UK has not historically relied much on the US for food, with only about 2% of food imports coming from there, most of which could be replaced if necessary.
“This may increase due to the new UK-US trade deal, but the terms and timescales are still not fully clear, requiring more detail for proper analysis,” she said. “The key issue is food standards, which have been a blocker in previous trade talks with the US. The UK government promises that food standards have not been compromised in this trade deal. Food traceability and assurance will be essential. Additionally, just because food is allowed into the UK, retailers and AFH (Away from Home) operators do not have to buy it. Large UK retailers and AFH operations have their own high standards and will likely scrutinise new US food sources before integrating them into their supply chains,” she added.
So how does the IGD think the global economic outlook is likely to evolve? Should retail co-ops prepare for another recession?
“The global economy has not yet fully recovered from Covid, and wars and trade disputes have further impacted performance,” Jay said. “A full-blown trade war would be detrimental, but fortunately, the US and China seem to have taken a step back for now. The UK is also making progress with the US, although the situation remains volatile. The economic outlook for the UK is not great, with bigger problems than global trade. However, co-ops have weathered various challenges before by sticking to their core values: solid ethics, customer focus, good supplier relations, and the membership scheme. These principles can help co-ops mitigate risks in uncertain times,” she added.
UK-India Free Trade Agreement
The deal was the second trade announcement this week, following the India Free Trade Agreement on 6 May. Reached after three years of talks, the agreement aims to increase bilateral trade by a further £25.5bn ($34bn) by 2040.
The NFU welcomed the announcement, particularly the news of tariff reductions for whisky and gin, salmon, chocolate, biscuits and lamb, something it had campaigned for. The deal includes reductions on 90% of tariff lines for UK exports to India.
“We’re pleased to see a balanced and considered outcome of the trade negotiations with India. Throughout these negotiations we have urged the government to stand its ground and to honour its commitments to British farmers when striking free trade deals,” Bradshaw said.
“Overall, this deal will be reassuring for many farm businesses and we urge the government to maintain this balanced approach in all future trade negotiations,” he added.
Under the deal, imports will still have to meet the same UK food safety and biosecurity standards.
“Ministers have clearly listened to our concerns around upholding the UK’s production standards and the importance of safeguarding our most sensitive farming sectors by maintaining the current level of tariffs for imports of sugar, chicken, eggs and pork,” said Bradshaw.
“Overall, this deal will be reassuring for many farm businesses and we urge the government to maintain this balanced approach in all future trade negotiations,” he concluded.
Meanwhile, India’s trade ministry estimates that 99% of Indian exports would benefit from zero duty under the deal, including textiles.
“At SEWA Cooperative Federation, we welcome any development that expands market access for Indian artisans and producers – particularly women in the informal economy who run and work through grassroots co-operatives,” said Jigisha Maheta, the managing director of SEWA Cooperative Federation, which supports women-owned enterprises in the informal economy.
“The proposed reduction in tariffs on Indian textiles entering the UK could create new opportunities for handloom and handicraft co-operatives, including those affiliated with SEWA.
“However, while the trade deal is promising on paper, its benefits will depend heavily on the implementation architecture. For women-led co-operatives to take full advantage of this deal, we must also address long-standing challenges: limited export readiness, language and compliance barriers, lack of digital infrastructure, and the high cost of sustainable certification.
“There is also a broader concern that liberalised trade, if not paired with inclusive safeguards, may favour larger players while leaving behind small producers and co-operatives. We believe that enabling mechanisms – such as capacity-building, simplified procedures for small exporters, and dedicated co-operative trade facilitation—must accompany such trade agreements.
“We hope this deal will pave the way for more inclusive, fair, and sustainable trade between the UK and India—one that uplifts women workers and ensures dignified livelihoods through collective enterprise,” she added.
This story was last updated on 16 May
