UK business leaders want improved trade relationship with EU

British Chambers of Commerce calls for 'honest dialogue' on improving UK-EU trade relationship

British companies want to improve business regulations with the EU. PA

A significant number of businesses are still struggling with the UK-EU trade deal, the British Chambers of Commerce has warned.

Two years after the deal agreed to by Boris Johnson, the business organisation is calling on the government to look again at how trade with Europe can be improved.

The UK Brexit deal came after years of often fraught negotiations between London and Brussels, with the economic effects of the UK’s exit still a divisive issue.

Last month, the Office for Budget Responsibility said Brexit had caused a “significant adverse impact” to trade volumes and business relationships between UK and EU companies.

Shevaun Haviland, director general of the BCC, called for an “honest dialogue” on improving the UK-EU trade relationship.

“Businesses feel they are banging their heads against a brick wall as nothing has been done to help them, almost two years after the TCA was first agreed," Ms Haviland said.

"The longer the current problems go unchecked, the more EU traders go elsewhere and the more damage is done.

Brexit timeline - in pictures

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  May 7, 2015 - David Cameron wins General Election on the pledge to hold a EU referendum. AFP

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  June 23, 2016 - The UK votes to leave the EU. AFP

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  June 24, 2016 - David Cameron resigns in wake of referendum defeat. AFP

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  July 11, 2016 - Theresa May wins Conservative Party leadership election. AFP

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  March 29, 2017 - British government invokes Article 50. AFP

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  April 18, 2017 - Theresa May calls snap election. AFP

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  June 8, 2017 - Theresa May wins general election with reduced majority. AFP

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  June 19, 2017 - Negotiations on withdrawal agreement begin. AFP

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  November 14, 2018 - Text of withdrawal agreement published. AFP

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  November 25, 2018 - Leaders of EU27 countries approve withdrawal agreement. AFP

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  January 15, 2019 - Theresa May loses parliamentary vote on withdrawal agreement. AFP

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  January 16, 2019 - Theresa May survives parliamentary vote of no confidence. AFP

The body is calling for a supplementary deal with the EU that can eliminate or reduce the complexity of food exports for small and medium-sized firms.

It also wants a Norway-style deal that would exempt smaller businesses from the requirement to have a fiscal representative for VAT in the EU.

Among a number of proposals, it is also calling for side deals with the EU and member states to allow UK companies to travel for longer and work in Europe.

The BCC, echoing the concerns of other business groups, has urged the government to find an agreement to the row over post-Brexit arrangements in Northern Ireland.

US President Biden warns UK not to damage Northern Ireland peace over Brexit - video

“Businesses want political leaders on both sides to move on from the debates of the past and find ways to trade more freely," Ms Haviland said.

“This means an honest dialogue about how we can improve our trading relationship with the EU.

"With a recession looming, we must remove the shackles holding back our exporters so they can play their part in the UK’s economic recovery.

“If we don’t do this now, then the long-term competitiveness of the UK could be seriously damaged.

“It is no coincidence that during the first 15 months of the TCA we stopped selling 42 per cent of all the different products that we used to.

“There are clearly some structural problems built into the TCA which cannot be addressed until it is reviewed in 2026.”