When only two months have passed since the trade agreement between the EU and the Kingdom began to apply, the impact of Brexit is very real on both sides of the Channel. Currently the main reasons for trade disruptions on both sides are delays in the delivery of goods and increased costs due to additional administrative burdens and their complexity.
“Delays in imports and exports of goods to and from the EU have worsened since the EU-UK trade agreement is being implemented from 1 January. It is the main conclusion that can be drawn ”, he explained. Neil McMillan, Director of Political Affairs and Trade at EuroCommerce (an organization representing approximately six million retail and wholesale business companies in Europe).
In addition, he specified that these delays “will mean shortages of stocks and price increases for consumers.” Even without having updated data showing the economic impact of Brexit on the agricultural sectors, the expert assures that in the long term “Danish and Polish pork exports will face a significant decrease in their trade with the United Kingdom due to an increase in costs linked to delays in the supply of products ”.
For her part, the president of the COPA-COGECA, Chistiane Lambert, urged on February 19 during a web-conference, to carry out changes in order to simplify the trade of agricultural products between the EU and the United Kingdom, due to the increase in costs for farmers. On this point, he indicated that “dairy cooperatives have to face an 8% increase in costs since the beginning of the year, while the fruit and vegetable sector has increased its expenses from 400 euros to 500 euros per truck” . In addition, he highlighted the additional cost and complexity of mixed shipments.
Regarding these disturbances, the president of COPA-COGECA urged Brussels to put in place pre-export certificates for products destined for the UK and stressed the need “to ensure a consistent approach between all border control posts in the different Member States”.
British exporters in distress
On the other side of the Channel, the situation is also very delicate. According to a survey carried out on February 11 by the British Chambers of Commerce, about half (49%) of exporters have stated that there are difficulties in adapting to changes in the trade of goods. In addition, they specified that the main reasons for these crashes They are linked both to increased administrative procedures and increased costs, delayed delivery times and confusion about the rules to follow.
According to the complexity of the situation, British exporters urge to delay the implementation of additional sanitary and phytosanitary controls from April and full tariff controls from July on imports to the United Kingdom. They are also calling on the British Government to work closely with Brussels in order to reduce wasteful burdens mainly linked to rules of origin.
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