The British Chambers of Commerce reports that nearly two-thirds of exporters in Britain have experienced difficulties in selling to the EU over the past year. They are urging the government to take action in order to alleviate trade challenges after Brexit.
Three years have passed since Boris Johnson signed the Trade and Cooperation Agreement (TCA) with the EU, but the small businesses that comprise a significant portion of the BCC’s membership continue to face challenges in navigating trade barriers.
In the latest survey conducted by BCC, it was found that 60% of those who export to the EU have experienced increased difficulty compared to a year ago. In contrast, only 18% of exporters to non-EU companies reported facing greater challenges.
Only 14% of exporters acknowledged that the TCA was aiding in the expansion of their business, while 49% expressed disagreement.
William Bain, head of trade policy at the BCC, explains that Brexit is not a fixed process. The compliance requirements have been increasing over the past year, resulting in more paperwork and higher expenses.
The TCA was praised for ensuring duty-free exports to the EU, and Johnson stated that there would be no additional barriers to trade.
However, exporters have recently encountered challenges with additional customs and safety inspections, as well as varying regulatory systems.
Exporters reported to the BCC regarding constantly changing and burdensome rules for phytosanitary standards on food exports, excessive paperwork that is described as a “nightmare,” and inconsistencies in the enforcement of customs regulations.
The report also mentions the adherence to EU sanctions regarding Russian steel and the implementation of the “carbon border adjustment mechanism.” This mechanism currently requires steel exporters to the EU to disclose their emissions and will eventually be applied on a larger scale. This week, the UK government revealed its plans to adopt a similar scheme.
The BCC is urging improved cooperation with the EU regarding upcoming regulations, in order to enable businesses to anticipate and adapt to changes.
Bain stated that this fall has been a challenge to help UK companies adapt to the new regulations. It is important for us to proactively prepare and be ahead of the game.
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One solution is to improve regulation cooperation processes, involving ministers and providing timely guidance and communication for businesses to comply.
Although businesses have brought up several familiar concerns, the BCC also expressed concern about upcoming EU regulations that many survey participants are not well-informed about.
Over 80% of individuals were not informed about the carbon border adjustment mechanism, while 70% were unaware of upcoming screenings on food imports from the EU that will go into effect next month.
“The government’s persistent disorder is hindering businesses seeking to expand through international trade,” stated Jonathan Reynolds, the shadow business and trade secretary. He added that firms looking to export are being burdened by ongoing uncertainty and red tape due to the Conservatives’ inability to fulfill their commitments.
Labour has a strategy in place to ensure a successful Brexit and we are committed to supporting our exceptional exporters by eliminating trade obstacles through our taskforce for small business exports.
According to a representative from the government, recent data reveals that British businesses are in fact flourishing. Between June of last year and now, we have exported goods and services worth over £360 billion to the EU, with a significant increase of 17.1% in current prices compared to the previous year. Additionally, our economy has experienced greater growth than major European countries such as Germany and France since our departure from the EU.
We recognize that there are still some problems and we are paying attention to the concerns of businesses. We are addressing these issues by collaborating closely with the EU to find solutions.
Source: theguardian.com
