Shoppers face higher prices without EU trade deal, BRC warns

The group has called for “pragmatic solutions” to regulatory checks that will apply to imports from January 2021, including certificates of origin, transit certificates or barcodes, customs valuation documents and destination paperwork.

The BRC has urged the Government to establish new import and export processes and “all necessary infrastructure now” as a priority, if it is to shield shoppers from the threat of higher prices and reduced choice.

In its report, ‘A Fair Deal for Consumers: EU Trade Roadmap’, the BRC said the problem would be “particularly acute” in the grocery sector. UK retailers currently import almost 80% of their food from the EU, most of which comes into Britain through Dover and Folkestone.

The BRC admitted there is “no possibility of a return to frictionless trade” now that the UK has left the EU, but wanted the Government to throw its weight behind a number of “key mitigations” that would “reduce the impact on consumers and retailers”.

It has called on Prime Minister Boris Johnson to strike a zero-tariff trade deal, to co-operate with the EU to minimise trade friction and to co-ordinate its VAT, customs and excise procedures.

The BRC also wants advance information on new checks and paperwork to avoid hold-ups at borders and has urged the Government to construct any necessary infrastructure at UK ports in a “timely” manner.

It cautioned that staff will need to be hired and trained to carry out border checks, IT systems will need to be adapted and tested, and holding facilities for lorries will need to be constructed.

BRC chief executive Helen Dickinson warned that “the Government has no time to lose” ahead of January 1, 2021.

Dickinson added: “The issue is simple – higher tariffs and extensive checks will harm consumers, retailers and the UK economy. The Government must set about to negotiate a zero-tariff agreement that minimises checks and red tape, otherwise it will be consumers who suffer as a result.

“The introduction of excessive or avoidable checks would mean businesses face a mountain of paperwork to be filled out by an army of newly trained staff, coupled with exhaustive checks on thousands of lorries every day. And the result for consumers would be higher costs and reduced availability on the shelves.”