Freight association urges rethink on EU Customs Union withdrawal

The Government must review its decision to leave the European Union Customs Union, so that business can continue to trade efficiently with EU customers and suppliers.

The Freight Transport Association (FTA) made the call on June 9, the day after the General Election.

“This morning, UK exporters and importers are waking up thinking what does the election result mean for Brexit, and the potential impact on my supply chains,” said FTA Deputy Chief Executive Officer James Hookham.

He said vital time had been lost from negotiation, warning: “Exiting the Customs Union threatens the imposition of tariffs, border checks, Customs declarations, and huge amounts of bureaucracy for the significant number of UK businesses that trade in the EU and the logistics organisations that deliver it for them.”

The FTA said negotiating a replacement deal to avoid that scenario would require a strong and convincing mandate, and that the June 8 election had failed to deliver that.

It said approximately 44% of the UK’s exports in goods and services were transported to the EU in 2016, valued at £240 billion out of £550bn of the country’s total exports.

“Logistics is key to the successful delivery of the nation’s ongoing economic success, and must be front and centre as the talks get under way,” it said.