UK may lose out if trade deals not copied – BRC

L Retail trade body warns of danger of price hikes l Says cost of Turkish clothes could jump 12%

New evidence out today from the British Retail Consortium (BRC) has stressed the importance to UK consumers of “keeping the benefits” of trade deals the European Union has negotiated with other countries.

The UK retail industry trade body said that currently the UK benefits from zero or low rate tariffs on various imports from trade deals that the EU has struck with third-party countries.

“From the day after the UK leaves the EU, on 30 March 2019, it will no longer be covered by these international agreements, so imported goods will be subject to higher tariffs and potential customs barriers. For consumers this means higher prices,” the BRC said.

It said that, using import data from UK retailers, it had identified the countries where negotiating replica trade agreements will make the most difference to ensure prices don’t rise immediately on exit.

The BRC highlighted food and clothing as two UK sectors that particularly benefited from such non-eu trade deals. It said that, in the event of a hard Brexit, with no deal, the tariff on clothing from Turkey, a major supplier to the UK, could rise from zero to 12 per cent. The price of fish from Iceland could rise from 3.4 to 11 per cent.

Andrew Opie, food & sustainability director at the BRC, said: “While securing a deal with the EU to enable tarifffree trade to continue remains the priority, the deals the EU has negotiated with countries around the world also contribute to the choice and affordability of goods that UK shoppers purchase every day.

“People need reassurance from government that these deals will be transferred in time to ensure that UK consumers don’t lose out. New or higher tariffs inevitably mean consumers would face higher prices in their everyday shop, as staple products such as fruit, vegetables, fish, and clothing would be hardest hit.

“Price increases of any scale would add to the burden of hard-pressed consumers whose finances are already being squeezed by inflationary pressures.”

Opie added that replicating these trade agreements and securing the continuity of free trade with Europe were the “crucial” next steps to avoid a damaging exit from the single market.