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retailer |
SPRING 2018 | 3
2 | SPRING 2012018 |
retailer
We’re past the one year to go mark for leaving the EU, and the
recent breakthrough in the negotiations logjam couldn’t have
come soon enough. The agreement on a framework for a
standstill transition period is something we’ve long argued is vital
to avoid a cliff-edge by giving businesses and government time to
adjust, plan ahead and invest.
Another encouraging development comes from both the UK and
EU-27 negotiators appearing committed to a tariff-free deal,
which is important for consumers. This is particularly important
for food as around 20 per cent of products sold in a supermarket
are imported from the EU and adding high tariffs would have a
significant impact on hard-pressed consumers.
We’ve also led calls to put the trade deals that the EU has
negotiated with third countries, from which the UK benefits from
zero or low rate tariffs on various imports, on a more secure
footing for the transition phase. With the UK and EU working
together, and goodwill from the third countries involved, there is
every sign that this will be achieved too.
These bilateral deals enable retailers to source products, namely
food and clothing, at preferential rates, so they must be
transferred in time to ensure UK consumers don’t lose out.
Alongside these signals of good intent however, there are
fundamental questions that remain unanswered. At the top of this
list is how goods will continue to move uninterrupted across
EU-UK borders after the transitional period ends. Securing
tariff-free trade with the EU is only part of the equation for
sustaining low prices and availability of goods for UK consumers.
High non-tariff barriers at our ports or on product standards could
be equally as damaging to UK consumers as any hit from higher
tariffs. A fivefold increase in customs declarations in the event of
a no-deal, could mean Operation Stack becoming a familiar sight
on the Kent motorways. We’ve been absolutely clear that any
friction introduced to the flow of goods, particularly fresh and
perishable ones, will lead to spoilage and gaps on shelves,
reducing choice and shelf life for consumers.
As we set out in our Customs Roadmap, to tackle the challenges
posed by the sheer scale and volume of goods that cross our
borders, we need a deal on customs alongside supplementary
agreements on regulatory standards, security, VAT, haulage,
transit and on drivers, to ensure goods can continue to move from
A to B as efficiently as possible. Getting this right is essential to
ensure UK consumers are able to buy the products they want
once the transition period comes to an end.
Retailers also need a deal that helps them fulfil the skills
requirements of an industry undergoing profound transformation.
From distribution and stores, to head office, there’s no doubt that
our EU colleagues make a vital contribution to British retailers’
ability to deliver the goods consumers want, when they want
them and they deserve certainty and security to continue living
and working here.
That’s why the UK’s future immigration system should take an
evidence-based approach as we seek to understand both the
current and future needs of the industry. Against a backdrop of a
tightening labour market and tough competition for workers, the
priority has to be for a simple, demand-led system for the future,
which strikes the best balance between getting the right skills in
place and a migration system that complements our domestic
labour market.
There will be opportunities for consumers from better trade deals
and new markets, but the risk of not achieving a deal with the EU
is enormous and its impact would be felt immediately by millions
of us from the transition’s end. So over the next few months until
the June European Council and beyond, the negotiations should
focus on reducing potential customs friction and creating a new
immigration system fit for the future.
The clock is ticking, whilst we have some certainty we need to see
more detail on how our supply chains will work. Shopping will be
one of the immediate litmus tests of the success of Brexit and
what we pay for products in 2021 will depend on the deal
negotiated in the next six months.
There will be opportunities for consumers from better trade deals
and new markets, but the risk of not achieving a deal with the EU
is enormous and its impact would be felt immediately by millions
of us from the transition’s end. So over the next few months until
the June European Council and beyond, the negotiations should
focus on reducing potential customs friction and creating a new
immigration system fit for the future.
The clock is ticking, whilst we have some certainty we need to see
more detail on how our supply chains will work. Shopping will be
one of the immediate litmus tests of the success of Brexit and
what we pay for products in 2021 will depend on the deal
negotiated in the next six months.
There will be
opportunities for
consumers from
better trade deals
and new markets,
but the risk of not
achieving a deal
with the EU is
enormous and its
impact would be felt
immediately by
millions of us from
the transition’s end.
Helen Dickinson OBE
Chief Executive
British Retail Consortium
NEWS FROM THE BRC
BREXIT: ONE YEAR TO GO BUT A LONG ROAD
AHEAD