Brexit at three: Fresh trade challenges growing

• Almost two-thirds (60%) of firms trading with the EU say it is now more difficult to do so than it was a year ago.

• Almost half (49%) of exporters disagree the Brexit deal is helping them grow sales.

• Two-fifths (41%) of firms exporting under the Brexit deal say they face difficulties adapting to its rules on buying and selling goods.

• The BCC has sent the Government a new report setting out pragmatic solutions to many of the issues.

• A new survey by the BCC’s Insights Unit of 733 businesses (97% SMEs) shows the difficulties facing British firms in using the Trade and Co-operation Agreement (TCA) have not eased.

The BCC report also highlights a fresh set of challenges approaching as UK and EU regulations diverge, creating further headaches for traders on both sides of the Channel.

The TCA was agreed on Christmas Eve in 2020 to allow tariff-free trade with the EU once Brexit took effect.

But a high proportion of businesses say trade with Europe in 2023 is now more difficult than it was a year ago.

The BCC has sent the Government its report examining the main issues the TCA is causing for firms with possible solutions to many of the problems.

The survey also found that 35% of firms buying and selling services faced difficulties due to the Brexit deal, while a lack of recognition for professional qualifications was exercising 27% of firms.

And awareness of upcoming changes in trade rules and regulations being made by either the UK or the EU was alarmingly low, with 80% or more of firms knowing no details of the legislation.

This includes knowledge of the Electronic Trade Documents Act, Export Health Certificate requirements, new labelling requirements, the EU’s Carbon Border Adjustment Mechanism, new checks on food imports, safety and security requirements for EU imports, UKCA and CE marking, and new EU VAT laws.

The BCC’s TCA Three Years On report sets out 26 recommendations to improve UK-EU trade.