Firms struggle to cope with post-Brexit hangover

SOME businesses say that costs and paperwork are hampering trade between Britain and the European Union as the reality of the United Kingdom’s postBrexit trading relationship with the bloc takes hold.

A trade deal that took effect on January 1 allows Britain and the EU to trade in goods without quotas or tariffs.

However, that is a far cry from the seamless, hassle-free trade the UK enjoyed while it was part of the EU’s single market. Companies now face new expenses and red tape, including customs declarations and border checks.

While fears of huge queues of trucks forming at English Channel ports were unrealised during the quiet Christmas and New Year period, other hurdles to smooth trade have emerged.

Courier company DPD said it was suspending deliveries by road from Britain to the EU until at least Wednesday because of the burden of new paperwork.

The company said up to 20 per cent of parcels had incorrect or incomplete data, meaning they had to be returned to its customers.

British food and clothing chain Marks & Spencer said it faced problems supplying stores in Ireland, France and the Czech Republic because of complex ‘‘rules of origin’’ regulations in the trade deal.

M&S boss Steve Rowe said one product affected was the popular Percy Pig line of candy and other sweets, which are made in Germany and packaged in the UK.

Firms shipping goods to Northern Ireland from the rest of the UK were also struggling with the new paperwork. Northern Ireland shares a border with EU member Ireland and remains closely tied to the bloc’s economy under the Brexit divorce terms, meaning new checks between it and the rest of the UK.

The British government warned traders that disruptions could grow.

‘‘The real challenge and potential for significant disruption starts next week, when we expect that the number of lorries heading to the border may return to normal levels,’’ said Michael Gove, the cabinet minister in charge of Brexit logistics.

‘‘Full compliance with the new rules is vital to avoid disruption.’’

AP Customs officials check vehicles and documents at the P&O ferry terminal at the port of Larne in Northern Ireland.