UK consumers face higher prices for EU goods, deal or not
6282 Mins Read
U.K. consumers will face higher prices on goods coming from the European Union after Brexit, whether Boris Johnson signs a free trade agreement with the bloc or not, according to British Retail Consortium, a major business group.
The British Retail Consortium represents 5,000 businesses making 180 billion pounds of retail sales.
Products imported from the EU after Jan. 1 2021 will require customs declarations, which cost between 16 pounds and 56 pounds per product line. They will also need documents like rules of origin paperwork, new red tape that is automatically triggered by Britain leaving the bloc’s single market and customs union.
Nearly four-fifths of food imported by British retailers comes from the bloc. Costs and delays for businesses will rise further if the U.K. and EU fail to be pragmatic on other customs processes, the BRC said.
The most burdensome will be export health certificates (EHC), a form required to move products of animal origin into the EU, which cost about 100 pounds each and must be issued by a vet or other qualified professional. Such products include meats, fish, cheeses and yogurts.
“These things will have to happen regardless of how good the deal is,” said William Bain, policy adviser at the British Retail Consortium. “Any increase in cost in a low margin industry is ultimately going to be faced by the consumer.”
The BRC has on Monday launched its report, “A Fair Deal for Consumers: EU Trade Roadmap”, outlining the retail industry’s priorities for the upcoming Government negotiations with the EU.
The roadmap calls for pragmatic solutions on future compliance and regulatory checks that will apply from January 2021. Without these, consumers will face higher costs and reduced availability of goods.
While the report makes clear that there is no possibility of return to frictionless trade under the Government’s red lines, there are key mitigations that could reduce the impact on consumers and retailers:
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
Timely construction of necessary infrastructure at UK ports
