There is an urgent need to ease the burden of new legislation following Brexit for our exporters. Recent research across the British Chambers of Commerce network shows there are issues with the EU trade deal that need to be improved. Nearly all the businesses in this research have fewer than 250 employees and these smaller firms are feeling most of the pain of the new burdens in the Trade and Co-operation Agreement (TCA).
Many of these companies have neither the time, staff, or money to deal with the additional paperwork and rising costs involved with EU trade, nor can they afford to set up a new base in Europe or pay for intermediaries to represent them. The issues appear to be on both sides of the Channel with barriers on the Continent as ports seem to have been unprepared.
But if both sides take a pragmatic approach, they could reach a new understanding on the rules and then build on that further.
• 71 per cent of exporters say EU trade deal is not enabling them to grow or increase sales
• Only 1 in 8 exporters think it is helping them grow or increase sales
• Majority think it has pushed up costs, increased paperwork, and delays, and put the UK at a competitive disadvantage.
Overall, just eight per cent of firms agreed that the Trade and Co-operation Agreement (TCA) was ‘enabling their business to grow or increase sales’, while 54 per cent disagreed. For UK exporters 12 per cent agreed that the TCA was helping them while 71 per cent disagreed.
When asked to comment on the specific advantage (for those that agreed) or disadvantage (for those that disagreed) of the trade deal, 59 firms identified an advantage, while 320 cited a disadvantage.
Staffordshire Chambers support the UK Government’s ambition to massively increase the number of firms exporting. If we can free up the flow of goods and services into the EU, our largest overseas market, it will go a long way to realising that goal.
The research, with responses from over 1,000 businesses, has highlighted a host of issues with the UK’s trade deal with Europe. The BCC believes urgent steps should be taken to address these problems so the UK Government’s ambition to increase the number of firms exporting can be met and have five key issues:
1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
If you want to know anything about trading overseas – from strategies to expertise on the documents you need – you can get help from our international trade team: International Trade – Staffordshire Chambers.
Our latest Quarterly Economic Survey is now open
This is one of the most important times for businesses across Stoke-on-Trent and Staffordshire to complete the Quarterly Economic Survey (QES). The information you provide will help to shape and influence current policy as the data is shared with the BCC, government departments including HM Treasury and the Cabinet Office as well as the Bank of England.
We are keen to hear from firms of all sizes (starts-ups, sole traders, SMEs, medium-sized and large corporations) as it helps to create an accurate picture of the current business landscape. If you could spare just a few minutes to fill in the survey it would be greatly appreciated.
If you want to talk to us about any business issues, including funding, you can call our switchboard on 01782 202222 or call the Stoke and Staffs Growth Hub Helpline on 0300 111 8002 or email: info@staffordshirechambers.co.uk
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