UK consumers face higher food prices and reduced availability, warns BRC report
17 Feb 2020 --- Without a pragmatic agreement, UK consumers face higher food costs and reduced availability of goods – that’s the assertion of the British Retailers Consortium’s (BRC) latest report on UK-EU negotiations. A Fair Deal for Consumers: EU Trade Roadmap outlines the retail industry’s priorities for the UK’s upcoming government negotiations with the EU. It calls for pragmatic solutions on future compliance and regulatory checks that will apply from January 2021.
Almost 80 percent of all the food that UK retailers import comes from the EU, making the EU negotiation particularly important for these essential goods, the BRC stresses. Most of this comes through Dover and Folkestone, the UK’s largest roll-on/roll-off ports, which handle almost 7,000 lorries every day (up to 10,000 during peak periods).
While the report makes clear that there is no possibility of a return to frictionless trade under the government’s red lines, there are key mitigations that could reduce the impact on consumers and retailers. These include:
- A zero-tariff trade deal
- Cooperation with the EU to minimize trade friction
- Coordination on VAT, customs and excise procedures
- Advance information on new checks and paperwork
- Timely construction of necessary infrastructure at UK ports
- Without pragmatic solutions and agreements with the EU, companies may be required to produce VAT and excise documents, freight documents, health and veterinary paperwork, export health certificates, Exit and Entry summary declarations, as well as Safety and Security permits.
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, notes the BRC. IT systems should be adapted and tested. Holding facilities for lorries, particularly at Dover and Folkestone, will need to be constructed.
“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 minimizes checks and red tape otherwise consumers will suffer as a result,” says BRC Chief Executive, Helen Dickinson OBE.
“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. 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 January 1, 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,” she adds.
Industry has been calling for more assurances for the food and beverage supply chain post-Brexit for a very long time. Ever since the initial referendum in June 2016, key representatives have been warning about possible challenges, including price spikes reduced availability, delays and much more, because of Brexit. Now, as the official Brexit day has passed, the UK is in the transition period which ends at the end of this year and those warnings keep coming.
Last month, UK industry demanded “more than just verbal assurances” for food supply security”, when the UK’s National Farmers’ Union (NFU) mobilized a coalition of 60 farming, environmental, animal welfare and public health organizations to address UK Prime Minister Boris Johnson in an open letter on trade and standards.
Edited by Gaynor Selby
