The British Chambers of Commerce has released a study on the UK’s trade deal with Europe highlighting some serious problems that need solving. The BCC says urgent steps should be taken to address these issues so more businesses can increase their exports, but only one in eight exporters thinks it is helping them grow or selling more products overseas.
The latest research by the British Chamber of Commerce exposed several major flaws within UK shop frontier programme which recently combined to form a -1% growth rate during 2018-19 financial year as it is not generating enough potential for GDP growth.
When asked to comment on the specific advantage or disadvantage of this trade deal, 59 firms identified an area in which they felt it had been beneficial. 320 others thought there were disadvantages associated with them- such as higher prices for goods exported from Great Britain than those manufactured locally (71%).
Of the 59 comments received on how TCA had benefitted them, companies said:
It allowed some businesses to continue trading without significant change. It encouraged others Global Markets in order for a firm's plan ahead of changes caused by new policies or economic influences that may affect their industry globally rather than just locally like before when everything could happen within one country alone because there was less competition between countries' economies which leads us all into an arms race where everyone tries harder & becomes more competitive against each other.
With the disadvantages of TCA, firms said that it had led to rising costs for companies and their clients. Smaller businesses did not have enough time or money just try deal with all these new rules they introduced in order make things easier on ourselves- what good does this do?, says one EU customer commenting about why he'll likely stay away from UK goods even though we might be cheaper than our competitors!
The recent research by the British Chamber of Commerce shows that 60% percent of exporters are facing difficulties adapting to changes brought about in their trade deal with Europe, while only 17 percent found these softer outcomes easy. Reacting to this finding William Bain Head Trade Policy at BCC said "This is further evidence there's work needed on an already outdated agreement."
The solutions needed to improve EU trade are:
- ISSUE: Export health certificates cost too much and take up too much time for smaller food exporters.
SOLUTION: We need a supplementary deal on this which either eliminates or reduces the complexity of exporting food for these firms.
- ISSUE: Some companies are being asked to register in multiple EU states for VAT in order to sell online to customers there.
SOLUTION: We need a supplementary deal, like Norway’s with the EU. This exempts the smallest firms from the requirement to have a fiscal representative and incur these duplicate costs.
- ISSUE: As things stand CE marked industrial and electrical products will not be permitted for sale on the market in Great Britain from January 2023. The same is true for components and spares.
SOLUTION: We need action from the Government to help businesses with these timelines. Many firms are far from convinced about a ban on CE marked goods in Great Britain.
- ISSUE: UK firms facing limitations on business travel and work activities in the EU.
SOLUTION: Government needs to make side deals with the EU and member states to boost access in this area as a priority for 2022.
- ISSUE: Companies starting to be pursued in respect of import customs declarations deferred from last year.
SOLUTION: We need a pragmatic approach to enforcement to ensure companies recovering from the pandemic do not face heavy-handed demands too quickly on import payments, or paperwork.
