The British Retail Consortium (BRC) has warned that shoppers in the UK could face higher prices and reduced availability of food if the government fails to negotiate a comprehensive trade deal with the EU.
The statement came as it released a new report – A Fair Deal for Consumers: EU Trade Roadmap – which outlines the retail industry’s priorities for the upcoming negotiations. The BRC is calling for pragmatic solutions on future compliance and regulatory checks that will come into force from January 2021 when the UK’s transition period comes to an end.
The retail body highlights that almost 80% of all the food that UK retailers import comes from the EU with most entering via Dover and Folkstone.
While the report makes clear that there is no possibility of a return to frictionless trade under the Government’s red lines, the BRC outlined measures that would reduce the impact of Brexit on consumers and retailers. These include a 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, and the timely construction of necessary infrastructure at UK ports.
The BRC has warned that without any pragmatic solutions and agreements, companies may be required to produce VAT and excise documents, freight documents, health and veterinary paperwork, export health certificates, exit and entry summary declarations, and safety and security permits.
Helen Dickinson, BRC Chief Executive, 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.
“Meanwhile, new IT systems will need to be created and tested before the 1 January 2021. Border Control Posts must be built, with people hired and trained to run. Unless these are ready and tested, the Government has no time to lose.”
