Fashion

UK Shoppers to face higher costs without ‘pragmatic’ EU trade deal, warns BRC


The British Retail Consortium (BRC) has warned that without a
“pragmatic” post-Brexit trade deal with the EU, UK customers would face higher
costs and reduced availability of goods.

In its newly-launched ‘A Fair Deal for Consumers: EU Trade Roadmap’
report, the BRC outlines priorities for the country’s retail industry
ahead of the government’s trade deal negotiations with the EU set to begin
next month.

The priorities include “pragmatic solutions” on future compliance and
regulatory checks that will go into effect in January 2021. “Without these,
consumers will face higher costs and reduced availability of goods,” the
BRC warned.

While the report makes clear that there is no possibility of a return to
frictionless trade under the government’s red lines, it proposes key
mitigations that could reduce the impact on consumers and retailers.

They include a zero-tariff trade deal; cooperation with the EU to
minimise trade friction; coordination on VAT, customs and excise
procedures; advance information on new checks and paperwork; and timely
construction of necessary infrastructure at UK ports.

While up until now the UK has been able to trade seamlessly within the
EU, the BRC has warned that without “pragmatic solutions and agreements”
companies may be required to produce VAT and excise documents, freight
documents, health and veterinary paperwork, export health certificates,
Exit and Entry summary declarations, and Safety and Security permits.

The BRC said staff would need to be hired and trained to carry out these
checks, IT systems would have to be adapted and tested, and holding
facilities for lorries – particularly at Dover and Folkestone in the South
of the UK – would need to be built.

Helen Dickinson, chief executive of the British Retail Consortium, said
in a statement: “The issue is simple – higher tariffs and extensive checks
will harm consumers, retailers, and the UK economy. The Government must set
about to negotiate a zero-tariff agreement that minimises checks and red
tape otherwise it will be consumers who suffer as a result.

“The introduction of excessive or avoidable checks would mean businesses
face a mountain of paperwork to be filled out by an army of newly trained
staff, coupled with exhaustive checks on thousands of lorries every day.
And the result for consumers would be higher costs and reduced availability
on the shelves.

“Meanwhile, new IT systems will need to be created and tested before 1
January 2021. Border Control Posts must be built, with people hired and
trained to run. Unless these are ready and tested. The Government has no
time to lose.”

Photo credit: Pexels, rawpixel.com



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