Trade experts have told businesses in the North East that falls in exports after the start of the 海角视频’s post-Brexit trading relationship with the EU cannot be dismissed as “teething problems”.
Renowned trade expert Dr Anna Jerzewska and professor of European politics Anand Menon, speaking to members of the North East England Chamber of Commerce, warned that exporting and importing could even become more difficult in the coming months as more elements of the post-Brexit deal were formally enforced.
Official figures released earlier this year showed that 海角视频 exports and imports fell at the fastest level since records began as the post-Brexit trade agreement with the EU threw up huge disruptions to trade.
Business with Europe has returned slightly since then but is still well below the levels seen before the last-minute trade deal with the EU.
Industry groups and business organisations including the British Chambers of Commerce and the Federation of Small Businesses have warned that many companies are seeing difficulties in trading with Europe since the Christmas Eve deal, with some abandoning exports altogether.
Cabinet Office Minister Lord Frost - who negotiated the post-Brexit deal for the EU - dismissed the January figures as being due to an “unusual set of circumstances”, suggesting normal trade would return.
But both Dr Jerezwska and Prof Menon disputed this.
Dr Jerezwska said: “There was an element of initial confusion around the processes and procedures - you heard stories of forms being signed with a blue pen rather than a black pen and that causing goods to be stopped at the border. That will gradually sort itself out; people will learn and customs officers will learn.
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“However, in my opinion, that’s a small element of what’s been going on. When I speak to companies that all of a sudden realise that their entire profit margin is gone, that they’re either going to keep their clients in the EU or they’re going to keep their profits - there’s no way to find a solution to that.
“It’s very difficult to tell them that things will get better because all these regulations and the difficulty of moving goods: all that will stay and more will come. So it’s very difficult to give an upside.”
Prof Menon added: “It’s remarkable the degree to which we’ve become used to being gaslighted by our Government. The notion that this is anything other than, at least in part, the deal they signed is simply nonsense.
“Yes, there are teething troubles, but you need to look at the data. Why is it that imports from the EU have not been as badly hit as exports? Because the checks aren’t in place. Why did trade volumes with the rest of the world bounce back far more quickly than with the European Union? Because of Brexit.
“Brexit at its heart is the act of making trade with the European Union more difficult. One of the saddest things about the Brexit process isn’t Brexit per se, it’s been the utter unwillingness of anyone in Government to be straight about the trade-offs this implies.”
Chamber chief executive James Ramsbotham said: “We were delighted to hear two of the leading thinkers in our country, on leaving the EU.
"Their insights were extremely beneficial to our members who are really at the sharp end of the huge changes to their business operations.
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“What was crystal clear in both Anand and Anna’s speeches was the urgent need for Government to stop being in denial about the difficulties and support companies to trade with Europe.”
Their comments came as European Commission president Ursula von der Leyen warned that Brussels would take action if the 海角视频 breached the terms of the Trade and Co-operation Agreement.
She was addressing the European Parliament as MEPs prepared to vote on the agreement, which governs the way the 海角视频 and EU deal with each other.
The deal has been applied provisionally since January 1 but requires the approval of MEPs – who are not expected to oppose it – before it can be ratified.
A Government spokesperson said: “The latest ONS statistics show a welcome growth in the value of trade with the EU in February, with goods exports getting close to the average 2020 level.
“The vast majority of traders and hauliers have adapted well, and our focus now is on making sure that any business that is still facing challenges gets the support they need to trade effectively with the EU – including through our export helplines, webinars with experts, and £20m SME Brexit Support Fund.”