Coventry and Warwickshire business leaders are urging firms to speak up if they are struggling with exporting to the EU due to the new trading relationship since Brexit.
A new survey from the British Chambers of Commerce (BCC) found that half of exporters are facing difficulties in adapting to the changes in the trade of goods following the ratification of the UK-EU Trade and Cooperation Agreement on January 1, 2021.
Issues commonly cited are increased administration, costs, delays, and confusion about what rules to follow.
The Coventry and Warwickshire Chamber of Commerce is urging businesses to let them know the problems they are facing so they can feed them back to the BCC and also to see if its International Trade team can support them through the ChamberCustoms service.
Tom Mongan, president of the Coventry and Warwickshire Chamber of Commerce, said: “We’ve spoken to many businesses who have faced difficulties in terms of trade under the new arrangement with the EU and this survey bears that out.
“We still want to hear from firms across the region because we might be able to help them overcome their issues but we can also feed them into the Government via the BCC in order to ensure the full picture is understood. There is, clearly, a lot of work still to be done when it comes to easing the process of trading with our nearest neighbours.”
BCC Director General Adam Marshall said: “Trading businesses – and the UK’s chances at a strong economic recovery – are being hit hard by changes at the border.
“The late agreement of a UK-EU trade deal left businesses in the dark on the detail right until the last minute, so it’s unsurprising to see that so many businesses are now experiencing practical difficulties on the ground as the new arrangements go live.
“For some firms these concerns are existential, and go well beyond mere ‘teething problems’.
“It should not be the case that companies simply have to give up on selling their goods and services into the EU. Ministers must do everything they can to fix the problems that are within the UK’s own control, and increase their outreach to EU counterparts to solve the knotty issues that are stifling trade in both directions.
“This situation could get worse if the UK sticks to its guns and introduces additional SPS checks in April and full customs checks on imports in July. These timescales need to change – and the support available for businesses who are battling to adapt to new trading conditions significantly increased.”
BCC Director of Trade Facilitation and ChamberCustoms Liam Smyth said: “Underneath the overall figures, firms’ concerns fit broadly into three areas.
“First, difficulties arising from the challenges adjusting to the new arrangements, such as the sheer volume of paperwork and significant new costs of adjusting to those.
“Second, issues about how new rules have been implemented, such as new customs arrangements.
“Third, core provisions of the TCA which are currently of significant concern to businesses, such as on Rules of Origin and VAT.
“Taken together, and on top of decreased revenue and cash flow as a result of the pandemic, this is a difficult moment for exporters. Some tell us they will respond to the challenges by switching away from international trade or by moving their operations overseas.
“The Government needs to respond to this risk by giving firms tax credits to help with their ongoing adjustment and leaving no stone unturned in educating businesses and removing every barrier they can.”
