As Brexit approaches its 10th anniversary, the British Chambers of Commerce says the government must set out a clear plan to ease the burdens it has placed on business.
BCC research shows over half of UK exporters (54%) think the current trade deal with the EU is making it harder to export and the need for change is urgent. Only 16% say the current deal is supporting them to grow. This has been a consistent picture since BCC started to track the impact of the deal in 2021.
The latest data also shows that three times as many exporters favour aligning with EU rules on products as don’t:
- 55% of UK exporters say this would help their business
- 18% believe it would hinder growth.
There is also increasing concern among UK firms involved in European supply chains about the EU’s Made in Europe agenda.
There are competing visions within the EU on its exact format, but a more extreme version could have a chilling effect on cross-border trade.
New content rules on sourcing from within the EU could squeeze British firms out of supply chains as the United Kingdom is now a third-party country.
Other key issues for business that still need to be addressed include customs red tape, VAT complexity, business mobility, mutual recognition of professional qualifications, and increased cooperation on defence.
William Bain, Head of Trade Policy at the BCC, said:
“Businesses have been put through the wringer since Brexit, as the costs and complexity of trading with the EU have soared.
“There is insufficient recognition and debate over the damaging effect on trade and growth this has caused. The Office for Budget Responsibility puts the long term hit to the UK’s economic growth at four per cent.
“Businesses have become increasingly frustrated because UK-EU relations don’t have to be this way. There are many steps that can be taken to simplify trade and benefit both our economies.
“But more urgency must be injected into the negotiations at the Leaders’ Summit in July and it is vital that political instability is not allowed to waste this opportunity.
“Top of the list must be finalising what has already been agreed. The bigger prize must be an economic security deal that confirms the UK’s involvement in EU supply chains and provides for closer defence cooperation.
“These are the practical steps that can make a difference and ease the Brexit burden that firms have had to endure.
“But debates about rejoining the EU or a customs union are not currently helpful. Firms tell us they want more trade with the Europe, the US and Asia.
“Businesses tell us they do not want to keep retreading old ground but look forward instead. Rejoining would compromise the trade deals we have made since leaving and cut our advantages in areas such as AI where our regulatory approach differs.”