Many UK exporters say Brexit trade deal won’t help – Business Live | company

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British companies are demanding more help from the government to export to Europe after new research found many companies feel the EU trade deal isn’t helping them grow or boost sales.

The British Chambers of Commerce (BCC) surveyed 1,000 businesses and found that a majority said they had caused problems such as: B. rising costs, more paperwork and delays and a competitive disadvantage for the UK.

Just 8% of companies agreed that the Trade and Cooperation Agreement (TCA) “enables their business to grow or increase sales,” while 54% disagreed.

Of UK exporters, 12% (or just one in eight) agreed that the TCA helps them, while 71% disagreed.

The BCC received 59 comments on the merits of the TCA agreed on Christmas Eve 2020, including:

• It had allowed some companies to continue trading without significant changes
• It had encouraged companies to look to other global markets
• It had provided stability so companies could plan.

But that was surpassed by 320 comments criticizing the deal, such as:

• It had led to rising costs for companies and their customers
• Smaller companies did not have the time and money to deal with the bureaucracy that was introduced
• It had discouraged EU customers from considering UK goods and services – due to the perceived cost and complexity.

William BainHead of Trade Policy at BCCsaid that smaller companies are particularly suffering from the changing trade relationship between the UK and the EU.

“This is the latest BCC investigation which clearly shows that there are issues with the EU trade deal that need to be improved.

“Almost all of the companies in this study have fewer than 250 employees, and it is these smaller companies that are suffering the most from the new burdens in the TCA.

“Many of these companies do not have the time, staff or money to deal with the additional paperwork and rising costs associated with EU trade, nor can they afford to set up a new base in Europe or hire intermediaries pay who they represent.”

The BCC has put forward a number of proposals, including steps to reduce the complexity of exporting food and tackle restrictions on business travel and work activities in the EU.

Last week, Members of Parliament’s Spending Watch warned that Brexit bureaucracy has affected Britain’s trade with the EU. They fear the situation could worsen unless the government works with Brussels to reduce raids in UK ports.

However, a government spokesman says companies are being given support to help with Brexit changes:

“The Trade and Cooperation Agreement is the world’s largest free trade agreement with no tariffs and no quotas. It allows UK companies to trade freely with Europe while also taking advantage of new trade opportunities with countries around the world.

“We have always been aware that being outside of the single market and customs union would mean changes and that companies would have to adapt to new processes. That’s why we make sure companies get the support they need, including through our free Export Support Service.

“Merchandise exports to EU countries last year were 4% higher than in 2020. However, given the Covid-19 pandemic, global recession and supply chain disruption, it is too early to draw firm conclusions on the long-term impact of our to draw new trade relations with the EU.”

However, there are indications that UK trade has weakened in recent years. British exports of goods to the EU fell by £20bn last year compared with the last period of stable trade with Europe, according to official figures marking the first full year since Brexit.

Elsewhere, companies such as nestle, Reckitt Benckiser and Standard Chartered report results.

European markets are expected to open slightly lower with the Ukraine crisis firmly in focus.

That’s what the US said Russia has deployed another 7,000 troops on the border, while Ukraine has denied claims by Russian-backed separatists that it has been conducting mortar attacks on its territory.

The agenda

• 7am GMT: European New Vehicle Registrations for January
• 9 am GMT: ECB publishes economic report
• 9.3am GMT: Weekly ONS survey of economic activity and social change
• 13:30 GMT: Monthly US Building Permits for January
• 1:30pm GMT: Weekly US Unemployment Numbers