The huge impact of the Government’s Brexit deal on businesses in the North East has been revealed in a report that shows three quarters of firms are having difficulties in exporting to Europe.
The survey from the North East England Chamber of Commerce found that 75% of respondents had difficulties in trading post-Brexit, reporting it had either a negative, or very negative impact on their companies.
Companies in the region cited increased paperwork, added costs and delays at ports as some of the problems encountered since the last-minute deal signed between the 海角视频 and the EU at the end of last year.
More than a third (37.5%) of companies in the region have seen sales to the EU fall since the start of the year, more than twice the number (17%) that have seen revenues increase.
The survey follows the release of official figures that have shown collapsing trade in the EU since the start of the new trading arrangements in January, and undermine Government insistence that the falling business is merely Brexit ‘teething problems’.
Jack Simpson, the Chamber’s training and global network adviser said: “Our survey analysed how businesses were finding EU trading six months on from Brexit.
“The results demonstrated clearly how challenging companies have found international trade, with a plethora of issues depending on their sector and products. We have identified the very urgent need for more, clear information from Government to support businesses and help find answers to their trading questions.
“There is no doubt Brexit is hitting our competitiveness as a country and will also make levelling up even harder, due to the North East’s long-standing, positive international trade record.”
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The Chamber survey found that as well as increased paperwork, increased tariff and administrative customs costs have also caused problems, with 41% of businesses struggling to absorb the new financial burden.
The logistics of trading with the EU has also proved challenging according to the results, with two-thirds of companies saying they had been impacted by port congestion, delays or a shortage of hauliers since January. Companies also reported rising costs for containers and shipping.
The last-minute nature of the Brexit deal, which was signed on Christmas Eve and implemented just a week later, has also caused difficulties for many companies.
Mr Simpson said: “We believe these results show larger businesses with more international trade resources, who have dealt with countries outside the EU, have coped with Brexit more easily than others who had no previous knowledge or experience.
"Respondents also experienced difficulties due to matters outside their control, for example, confusion over the required paperwork and shortage of experts, such as vets, to approve movements
“Under the new 海角视频-EU relationship, most goods’ movements rely on multiple stakeholders working together, such as buyers, sellers, freight forwarders, customs agents, hauliers and others, towards the same end. Unfortunately, this chain of stakeholders can only be as strong as its weakest component, and an error made by one can have profound impacts for the others.”
Figures released in May showed that Brexit caused a huge drop in trade between the 海角视频 and European Union nations, with the 海角视频’s trade in goods with the European block falling by nearly 25%. Last week it was revealed that food and drink exports to Europe fell by around £2bn as a result of ‘additional bureaucracy, customs delays and costs of trading with the EU’.
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A Government spokesperson said: “We are ensuring businesses get the support they need to trade effectively with Europe and to seize new opportunities as we strike trade deals with the world’s fastest-growing markets.
"As well as operating export helplines, running webinars with experts and offering businesses support via our network of 300 international trade advisers, the Government has launched the £20m SME Brexit Support fund and is delaying full import border checks until 1 January 2022.”