UK: Government insists British goods should be sold in Europe without extra costs after Brexit

22 Aug 2017 --- The British Government is calling for UK firms to have the same kind of free trade of goods arrangements even after it has left the EU – which directly contradicts the bloc’s current position on trade. The Department for Exiting the European Union (DExEU) is calling for a “free and frictionless” trade of goods and services after Brexit in March 2019, in the latest position paper from the UK government, which was published yesterday (August 21).

Even after the UK has left the bloc, it wants businesses to avoid paying what could amount to millions in compliance costs. However, that goes against the EU’s current policy, which states that only Member States can enjoy special terms and conditions of trade. 

The paper says that goods that have been placed on the single market before the exit date should continue to circulate freely in the UK and EU “without additional requirements or restrictions.”

If a UK firm has already gone through its compliance obligations beforehand, then it should not have to duplicate processes in order to place goods on the UK and EU market after Brexit, it says. 

UK negotiators, led by Brexit Secretary David Davis, are expected to meet with their EU counterparts to continue talks next week.  

The move has been welcomed by UK industry body, the Food and Drink Federation (FDF), which continues to campaign on behalf of UK businesses. 

Commenting on the Government's position paper on goods on the market at the point of EU exit, Ian Wright CBE, Director General of the FDF urges the government to secure a swift transition deal in order to avoid disruption. 

“FDF's priority is to ensure businesses can trade both finished goods and raw materials freely and without friction as part of any interim transition deal with the EU27 and through a future UK-EU trading relationship,” he says. 

“We are pleased to see that today's paper recognizes the challenges for UK food and drink products on the market at the point of exit and that Government is considering how to mitigate against the worst-case scenario.”

“However, as last week's record export figures from FDF highlight, Europe is an essential market for UK food and drink and we urge the Government to secure a transition deal swiftly to protect consumer choice and to prevent any unnecessary disruption.”