British companies have blamed “mind-boggling” forms on a £3bn-a-year hit to meals exports since Brexit.
A brand new report by the Centre of Inclusive Commerce Coverage (CITP) has discovered that the transport of UK meals and agricultural merchandise to the EU has fallen by greater than 16% on common throughout the three years since Britain left the one market.
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This equates to a £2.82bn a 12 months drop in produce travelling from Britain to the bloc.
Whereas the autumn has coincided with the battle in Ukraine and the COVID pandemic, the exports between the UK and EU “demonstrate no recent signs of regaining previous levels”, the report mentioned.
Business consultants blamed the decline on added layers of regulation required to ship merchandise to Europe since Brexit.
Earlier than the referendum, there was frictionless commerce between the EU and the UK.
However on the finish of the Brexit transition interval in January 2021, the UK grew to become regarded by the EU as a “third country” in buying and selling phrases, requiring bodily border checks and well being certificates on agri-food merchandise travelling from Britain.
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‘Completely horrendous’
He is additionally needed to shrink the vary of his merchandise, put up prices and lengthen the lead time to ship them over – from about three days to a few weeks – to be able to adjust to the extra checks and forms.
“The EU went from being the easiest market in the world to quite literally the most difficult to get food into,” he mentioned.
“The regulation work involved, the complexity is mind-boggling to the point that it’s significantly shrunk our European business. We are trading less than half what we previously had.
“There’s not anyone within the meals trade that won’t say Brexit is the largest impairment to export gross sales… it has been completely horrendous.”
Labour’s manifesto promised to enhance the UK’s buying and selling relationship with the EU by means of a veterinary settlement, which it says would forestall pointless border checks and assist sort out the hovering value of meals.
A report from Aston College discovered that such an settlement may enhance agri-food exports from the UK to the EU by 22.5%
Nonetheless, ministers have been tight-lipped on what, if any, progress has been made on this entrance.
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EU imports additionally in danger
The CITP mentioned step one in negotiations must be to take inventory of the divergence that has taken place since Brexit, to result in nearer alignment.
Whereas the EU has introduced in stricter requirements in most areas that the UK has not matched, together with pesticides and dangerous substances, the UK has launched stricter animal welfare requirements, the report discovered.
He mentioned: “We are all facing ongoing challenges in regard to the global supply chain. For two trading nations so close with such similar levels of standards, we should ease facilitation where possible.”
Mr Forgione warned the issues will quickly be mirrored on the EU facet of issues after equal border checks on imports from Europe had been imposed.
The brand new customs guidelines had been delayed 5 occasions due to considerations about disruption and elevated meals costs.
A phased introduction started in January, with trade chiefs warning it might doubtless “add billions” to shopper payments.
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“We have had conversations with EU producers considering withdrawing from the EU market because of the costs,” Mr Forgione mentioned.
“It’s not an insignificant issue.”
A authorities spokesperson mentioned: “We have been clear that a veterinary or SPS agreement could boost trade and deliver significant benefits on both sides.
“Closing preparations are topic to negotiations however the UK and EU have equally excessive requirements. “
