UK - EU trade relationship needs to change, says new BCC report

The British Chambers of Commerce (BCC) is calling for the UK to fundamentally reassess the terms of its relationship with the EU to drive stronger economic growth. 

In its new report, The Future of UK-EU Relations', the BCC argues that the imminent Leader's Summit should be used to kickstart an in-depth exploration of nine possible options for the relationship. 

It believes that businesses can seize the moment created by Andy Burnham's willingness to re-open the debate, to secure a new deal that will better serve the UK economy and stand the test of time. 

It is calling for the government to lead the conversation by providing detailed comparative studies of the different models and their economic impact. 

The intervention comes as new BCC research shows that for many exporters the UK-EU trade relationship is still failing to deliver, almost six years after Brexit. 

The survey of more than 1,500 firms found that many are still struggling with a thicket of Brexit red tape which is in perpetual motion.  

Businesses face customs, VAT, regulatory and mobility barriers, alongside rising protectionism, global subsidies and the EU's emerging Made in Europe' agenda. All combine to push UK firms to the margins of supply chains they once helped build. 

• More than two-fifths (42%) of exporters identify tariffs, quotas or rules of origin as barriers to growth in the EU. 

• More than half of exporting businesses (56%) want EU customs paperwork and delays removed so they can grow. This rises to 58% of manufacturers. 

• More than a third (35%) of exporters cite EU VAT requirements as a barrier. 

Why Businesses Want Change 

We are losing business in the EU and if things don't change soon it will move to a Dutch organisation and will be very difficult to recover'. 

Medium pharmaceutical firm, in Ayrshire  

Prior to Brexit we were exporting our products to a number of food service companies, but since Brexit we lost all of our exports'. 

Small Manufacturer, in Shropshire  

Access to market - we worked in 18 EU countries over the 20 years before and none after or since Brexit'. 

Micro consulting firm, in Ayrshire   

Increased revenue in Export sales, which have greatly depleted since Brexit due to trade barriers and tariffs and bureaucratic measures'. 

Medium manufacturing firm, in Black Country  

Shevaun Haviland CBE, Director General of the BCC, said: 

The evidence from businesses suggests that the Prime Minister is right to have initiated a conversation on our future relationship with Europe, and he deserves real credit for having done so.  

We must now make sure the debate that will follow is thorough, based on verified research, and listens closely to what businesses have to say. 

Firms have shown great resilience in adapting to Brexit, but that adaptation has not removed the costs of paperwork, delays and needless duplication of bureaucracy that is has brought. 

The world has moved on too. Protectionism is rising and the EU is reshaping its industrial policy in response, so standing still is not a choice without repercussions. 

This is not a binary case of being in or out, there are many different routes we can take. We need to follow the evidence and seek a future relationship which gives UK firms the strongest platform to trade, invest and grow. 

The BCC has already begun a process of consulting the tens of thousands of businesses in our network to find out what they want the future of EU trade to look like.  

Government needs to examine all of the options, remain clear-headed about the trade-offs each involves, and involve business in the decision-making process from the start.  

While the optimal destination is not yet clear, if we seize this moment, we can ensure a stable, practical partnership with Europe that supports growth on both sides for generations.