Economists warn that the issue is getting worse as Brexit pink tape for British companies results in a decline within the UK’s commerce in items with the EU.
The findings of a report by Aston College Enterprise College in Birmingham cowl the three years because the 2020 Brexit commerce deal was signed.
The report mentioned the worth of UK exports to the EU fell by 27% and the worth of imports fell by 32% in contrast with forecasts below Brexit.
Nonetheless, exports of tobacco, rail and plane cargo elevated.
The number of items exported by commerce has decreased, with the UK exporting 1,645 fewer merchandise to every EU nation.
The report excludes companies, which have carried out higher than many specialists anticipated since Brexit.
“EU-UK commerce will worsen considerably in 2023,” the creator mentioned.
“Adverse impression [trade agreement] This example has intensified over time, with the commerce decline in 2023 being extra pronounced than in earlier years,” the authors added.
Farmers, clothes producers, wooden and paper producers are among the many worst-affected sectors, with the worth of EU exports falling by greater than half in lots of sub-sectors.
The biggest decline in export worth was in edible fruits and nuts, which fell by 73.5%.
Commerce with smaller, extra distant international locations throughout the EU can be most affected, whereas commerce with bigger, nearer international locations can be least affected.
The authors say that because the emergence of varied types of commerce pink tape or non-tariff obstacles after Brexit, many smaller UK producers have given up on exporting small portions of merchandise to some EU international locations.
Du Jun, one of many examine’s authors, mentioned elevated guidelines and laws reminiscent of security inspections and labeling necessities had been one motive for the gross sales decline.
“Whereas these measures do defend customers, competitors and the atmosphere, they’re additionally more and more inflicting difficulties and prices for merchants,” she instructed the BBC’s Right this moment programme.
Mary Quicke, of Quicke’s Cheeses in Devon, instructed the BBC she discovered it “actually tough to take care of all of the regulatory burden”.
She mentioned she used to provide on to 4 prospects within the EU, however “we needed to go them on to others”.
“We simply don’t have the individuals to do the paperwork.”
A authorities spokesman mentioned it could “work laborious to enhance our commerce and funding relationship with the EU and take away pointless commerce obstacles, whereas recognizing that there can be no return to the only market, customs union or free motion of individuals”.
The BBC understands that in latest conferences with the federal government, enterprise representatives had been invited to place ahead early concepts on “resetting” the buying and selling relationship with the EU, with a give attention to “financial safety”.
Progress is unlikely till subsequent yr, when the brand new European Fee is formally established and the UK itself finalizes a brand new industrial and commerce technique.
