Some EU food makers will give up on Britain, warns industry chief
The boss of the Chilled Food Association says European companies may stop exporting to the UK when border checks are enforced
29 April 2021 • 2:56pm
The UK government has delayed imposing post-Brexit checks on food imports coming from the European Union until October 1
Credit: Chris Ratcliffe/Bloomberg
Some European manufacturers will give up on exporting food products to Britain once the UK starts to enforce checks at the border this autumn, a top trade association chief has said.
Karin Goodburn, director-general of the Chilled Food Association, said continental food manufacturers have been put off after witnessing British companies’ struggles with the new regulations.
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The glass-half-full conundrum usually reflects a mixture of philosophy, perception and context.
For Britain’s trade figures, it could represent the difference between life and death for some businesses.
Brexiteers declared victory last week as data showed trade levels bounced back in February, edging towards normality after a record plunge in January. But the headline figures hid lasting pain for some exporters, and serious questions about the future of British trade with Europe.
Goods exports bounced back nearly 50pc compared to the previous month, recovering about half the ground lost during January’s plunge, but leaving a substantial chunk left to find.
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More small companies are likely to go out of business because of Brexit, a former head of the British Government Economic Service has told the new UK Trade and Business Commission.
Vicky Pryce told the commission that “small businesses are particularly affected” by red tape and logistics problems caused by Britain leaving the EU, and they cannot afford the lawyers and advisers used by big companies.
The cross-party group of ministers and experts was launched on Monday to examine trading relations with the EU and new deals with the rest of the world.
It was formed after the parliamentary committee on the future relationship with the EU was disbanded at the start of the year, and is supported by formerly anti-Brexit group Best for Britain.
Breaking free of Brussels bureaucracy was meant to herald a bonfire of red tape for Britain. In the first 100 days of Brexit, the only thing many businesses burned was money.
Customs checks, paperwork and border delays since the U.K. completed its withdrawal from the European Union at the start of the year are sucking cash and time out of firms from big-name retailers to small family-owned businesses. Companies, which warned for years that this would happen, take no pleasure in saying “we told you so,” but the frustration is clear as they grapple with the long-term reality.
For many businesses on tight margins, every pound spent on documentation means less for wages, hiring and investment. While the impact will be far less dramatic than the short-term shock of the Covid-19 lockdowns, over time it will add up, hobbling the economy and eating into sales, earnings and incomes.