The body representing UK retailers has warned the country’s government that higher costs of goods, including food, and reduced availability, could result if it does not get Brexit trade talks right.
The British Retail Consortium (BRC) has released a new report on the UK-EU negotiations – A Fair Deal for Consumers – EU Trade Roadmap – which warns that without a pragmatic agreement consumers may see a hike in prices and face product shortages.
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Pointing out that almost 80% of all the food that UK retailers import comes from the EU, the report stresses that the UK-EU negotiations are particularly important for essential goods.
It argues the UK government must establish import/export processes and all necessary infrastructure now.
The report 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,” it says.
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“The government must establish import and export processes along with the infrastructure needed to conduct necessary checks. Staff will need to be hired and trained to carry out these checks. IT systems must be adapted and tested. Holding facilities for lorries, particularly at Dover and Folkestone, will need to be constructed,” the BRC said.
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By GlobalDataHelen Dickinson, the BRC’s CEO, said: “The issue is simple – higher tariffs and extensive checks will harm consumers, retailers, and the UK economy. The government must set about to negotiate a zero-tariff agreement that minimises checks and red tape, otherwise it will be consumers who suffer as a result.
“The introduction of excessive or avoidable checks would mean businesses face a mountain of paperwork to be filled out by an army of newly trained staff, coupled with exhaustive checks on thousands of lorries every day. And the result for consumers would be higher costs and reduced availability on the shelves.”
