Brexit: Boris Johnson 'worried' France is in breach of trade deal

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Following the UK’s departure from the single market and customs union, firms also had to fill in a daunting total of 140,000 export health certificates, the report from the NAO has said today.

According to the watchdog, red tape — alongside new costs — swiped £17bn from trade between the UK and the EU, a huge loss for businesses.

NAO’s report states: “Between January and August 2021, traders have made around 48 million simplified and full customs declarations on goods movements between GB and the EU and between the UK and the rest of the world.

“Between January and June 2021, certifying officers have signed off 140,000 Export Health Certificates (EHCs) for the movement of goods from the UK to the EU.

The report shows that “extra burdens” at the border and “elsewhere in the supply chain” have resulted in a 15 percent decline — £17bn — of goods traded between the UK and EU in Q2 compared with 2018.

“UK trade with the rest of the world”, meanwhile, grew 1 percent — £1bn — in the same quarter.

The report notes the impact of Brexit and the impact of the pandemic could not be disentangled. Yet, “reductions in the UK’s trade with the EU are significantly greater than the UK’s trade with the rest of the world over the same period”.

Hilary Benn MP, Chair of the cross-party, cross-industry UK Trade and Business Commission, said: “This report confirms what we have been hearing this year from businesses.

“Far from creating opportunities, Brexit has burdened firms with increased costs and labour shortages, as well as mountains of red tape and pointless form-filling.

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“Lost trade means less business, fewer jobs and lower incomes across the UK.

“What is the government going to do to remove the barriers to trade with our closest neighbours and biggest market that they have imposed?”

Since Boris Johnson’s post-Brexit tariff-free trade deal with the EU came into force on January 1, exporters have complained that hidden costs and barriers mean there is no such thing as no tariffs.

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NAO’s report also raises concerns over the government’s decision to delay October and January red tape deadlines for EU imports to July 2022, warning it could face action for not “complying with international trading rules” with UK exporters at a “disadvantage”.

However, it acknowledges 41 ports in need of upgrades may not have been ready for the introduction of new controls, adding that workers will still face “significant risks” when changes are implemented.

Tim Morris, chief executive of the UK Major Ports Group called for “an immediate stop” to changes “so ports can complete facilities”.

He said: “Without a common playing field of approach for cost recovery at border control posts, trade flows will be potentially distorted, risking overloading some routes and leaving new capacity underused.”

Gareth Davies, head of the NAO, said: “We recognise the significant achievement of government, departments and third parties in delivering the initial operating capability needed at the border for the end of the transition period.

“However, this was done in part by using interim measures and by delaying the introduction of full import controls.

“Much more work is needed to put in place a model for the border that reduces the risk of non-compliance with international trading rules, does not require any temporary fixes, and is less complicated and burdensome for border users.”

The watchdog’s report describes the government’s handling of the new border with the EU as “largely successful” but emphasises it has relied on temporary measures, which is “not sustainable”.

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