UK exporters continue to struggle with post-Brexit trading rules, with only 15% of businesses citing growth in sales with the EU. As companies call for policy resets, a closer EU relationship could help offset higher taxes and trade frictions.
Post-Brexit Trading Rules: Companies Call for Policy Reset
Many UK exporters are still struggling with the post-Brexit trading rules, despite a trade and cooperation agreement (TCA) signed in 2020. The British Chambers of Commerce (BCC) has stated that companies want greater flexibility in their dealings with the EU.
Challenges Faced by Businesses
A survey conducted by the BCC found that only 15% of its member companies believe the TCA has helped them grow sales with the EU, while 40% said it had not made any positive impact. The main issues faced by businesses include:
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Higher taxes imposed at the autumn budget
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Increased costs due to trade frictions
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Limited awareness of new EU regulations on safety and security
Improving Trade Relations
Shevaun Haviland, director general of the BCC, suggested that a closer EU relationship could help offset the impact of higher taxes and tackle some trade barriers. The government has talked about a new era of trade relations with the EU but has yet to deliver significant changes.
Haviland urged ministers to negotiate a youth mobility deal that would allow EU workers to come to the UK and vice versa, as well as to reduce paperwork and bureaucracy, improve business travel flexibility, and balance professional qualifications between the UK and EU.
Key Areas for Improvement
Other aspects of the Brexit deal that businesses want improved include:
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VAT requirements (36%)
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Mutual recognition of professional qualifications (24%)
The government hopes to negotiate a deal allowing professionals such as architects, doctors, and accountants to practice across the EU. The BCC also warned that if rules set in Brussels continue to evolve without Britain following suit, trade frictions could increase further.
Lack of Awareness
A significant number of businesses are unaware of new EU regulations on safety and security affecting exports to the 27-member bloc from January. This lack of awareness highlights the need for clearer communication and better support from government and regulatory bodies.
Research has shown that in the first two years of operation, the TCA reduced trade by £27bn, which is less than half the hit forecasted by the independent Office for Budget Responsibility.
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- theguardian.com | UK exporters still struggling with post Brexit rules, says trade body
