Businesses in the UK fear post-Brexit trade disruptions because EU exporters are unprepared for changes to UK customs starting Jan 24
The United Kingdom (U.K.) businesses have warned of a new wave of post-Brexit trade disruption because the European Union (E,U.) exporters are not ready for U.K. customs changes, which start this Jan.’24.
Britain left the E.U.’s single market in January 2021 but it has repeatedly delayed imposing checks on E.U. imports. The E.U. immediately enforced its rules, leading to port delays in 2021 and prompting some British exporters of cheese and high-end beef farmers to give up on selling to the bloc, at least initially.
Make UK, which represents manufacturers in the U.K., said in December 2023 that 90% of firms it surveyed still faced problems doing business with the E.U., with customs and clearance the biggest barrier.
Besides, the U.K. has postponed the full implementation of its post-Brexit border controls on food and fresh products 5 times due to worries about port disruption and the cost-of-living crisis. But its new Border Target Operating Model (BTOM) comes into force on 31st Jan.’24, which will be introduced in 3 phases.
Initially, the E.U. exporters of animal and plant products, such as eggs, dairy, meat and berries, will be required to present Export Health Certificates (EHCs) to British authorities. But physical checks on shipments will only start on 30th April’24, followed by a requirement for safety and security certificates from 31st Oct.’24. It is to be noted that the U.K. imports up to 70% of its fresh food from the E.U. in the winter months, falling to about 30% in warmer months, with as many as 1,000 trucks daily arriving at its ports.
The British Retail Consortium and the Fresh Produce Consortium have also expressed concern. The Chairman of the Horticultural Trades Association – James Barnes, said there is a risk that the U.K.’s new border infrastructure, processes and IT systems would not be ready for April’24, the biggest month for plant shipments.
Speaking on the occasion, Barnes said, “It’s unfortunate that it’s happening when we think things aren’t ready and at the busiest time of year.”
The Government said all infrastructure and systems are ready or on track to be ready by April’24 and it would implement checks carefully with a view to avoiding delays. The Dutch Association of Wholesalers in Floricultural Products called for a delay in the U.K. border checks until 2025.
With the General Elections expected this year in the U.K., businesses are hopeful that the Government might adopt a light touch to avoid delays and shortages.
