EU-UK trade deal causes headaches for business

Two years after the United Kingdom formally withdrew from the European Union, business chiefs say urgent action is required to address difficulties in trading with the bloc.

The dire situation for business trade was illustrated last week by pictures published on social media of long queues of trucks waiting to access the port of Dover in England.

The British Chambers of Commerce, or BCC, said in a news release that French customs officials are demanding physical ink signatures for exports paperwork, in addition to digital documents, causing the delays.

The Daily Telegraph reported that there are now also delays on the French side at the port of Calais, after the UK initiated full customs controls on EU imports last month.

The BCC has called for additional agreements between the UK and EU to reduce the bureaucratic paperwork.

In comments issued with the news release, William Bain, head of trade policy at the BCC, said one key issue at Dover relates to the export of food products.

"Like many of the problems, this looks to be down to a differing interpretation of how the trade arrangements work after leaving the EU," he said.

"In this case we are hearing French customs require a wet signature on paperwork for exports of animal and plant products, but as much of the documentation is produced digitally, this is creating hold-ups.

"It is the latest in a string of issues with the trade deal that speaks to the wider problems of interpretation, inconsistent application and glaring gaps in its coverage."

Gareth Thomas, the shadow minister for international trade, was quoted in The Guardian as saying that ministers must urgently take action to reduce the delays.

"If ministers won't act on the chamber's ideas, they need to explain quickly what they are going to do to keep trade flowing," he said.

Since Brexit, UK exports to the EU have dropped, said The Guardian. It cited economists as saying that the impact of the COVID-19 pandemic and consequent global trade disruption have made it more difficult to identify the true effect of Brexit, but that the UK had suffered more compared to other major economies.

Bain said: "No-one is expecting goods to flow as freely across the channel now as they did prior to Brexit.

"But the way the trade agreement is being interpreted in 27 different EU countries is a major headache for UK business — especially smaller firms without the cash reserves to set up new EU-based arrangements."

The Guardian quoted a British government spokesperson as saying that a lack of vessels was the main cause of the issues at Dover, rather than the new customs controls.

The spokesperson added that the UK urged the EU to "take a pragmatic approach as the new rules come into effect".