UK firms in the dark over regulatory ‘avalanche’ for EU trade, report warns
Most businesses are in the dark about a looming “avalanche” of changes in EU-UK trade regulations, an industry group is warning.
The British Chambers of Commerce (BCC) said its research among 700 firms suggested that the vast majority are unaware and unprepared for the changes in EU/UK regulations.
Over four in five manufacturers said they do not know about new reporting requirements on EU exports of goods containing high-carbon steel, and selected other items, from October.
Meanwhile around nine in 10 exporters were either unaware or unprepared for new EU VAT requirements due in January 2025.
It comes just after Prime Minister Rishi Sunak announced the UK would rejoin the Horizon science funding scheme in what’s being seen as a significant boost for the UK’s post-Brexit relationship with the EU.
The BCC said the lack of knowledge and preparation for the changes mean that some traders with the EU could face new delays and unexpected costs. In some cases exporters could find their goods unable to be transited to EU customers, it warned.
William Bain, head of trade policy at the BCC, said: “It is a serious worry that more than four out of five manufacturers who export have no knowledge of the EU’s new Carbon Border Adjustment Mechanism, which begins roll out in just over three weeks’ time.
“It is just the start of a series of changes that will gradually ratchet up over the next three years, to deter the use of cheaper but higher-carbon steel, and other goods with highly embedded climate damaging emissions, being imported into the EU.
“This first phase covers only a limited number of iron and steel products, fertilisers, hydrogen, cement, aluminium and electricity, but any UK company which then includes any of these items in their goods, for example in nuts and screws, will now have to declare them.
“This is a very complex set of rules – the EU’s published guidance runs to more than 200 pages. It is likely manufacturers that export will have to think about allocating dedicated staff resources just to deal with these reporting requirements.”
Alan Jones – Press Association