Brexit: Tory MP calls for end to Brussels ‘red-tape’

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The Labour MP slammed the issues brought by Brexit for the export of goods from the UK to the European Union, describing “checks, bureaucracy, rules of origin, paperwork and extra costs” as a huge disadvantage. It comes as new figures from the Office for National Statistics (ONS) show exports to the bloc plunged by £20bn last year.

Mr Benn said on Sunday: “After the Brexit deal was signed, Boris Johnson infamously claimed that there would be ‘no non-tariff barriers’ on trade with the EU. It wasn’t true.

“In recent weeks we have seen more and more evidence of the adverse impact that the UK’s new trading relationship with the EU is having on British businesses and exports.

“The Public Accounts Committee has found that ‘UK businesses face additional administration and cost when trading with the EU’.”

The former Labour Cabinet minister went on to highlight the data released by the ONS on Friday, which reflect the results of the first full year since Brexit.

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Comparing trade performance against figures from 2018 — before the distortions caused by firms stockpiling ahead of Brexit deadlines and the start of the coronavirus pandemic — it was found exports fell by 12 percent as a result of the combined impact of COVID-19 and Britain’s exit from the single market.

Meanwhile, exports to the rest of the world dropped by a much smaller £10bn, about 6 percent, compared with three years ago.

Mr Benn continued: “The British Chambers of Commerce have said ‘with data from the first year of the TCA now available, the UK is trading less with the EU than it was three years ago. This gap is not currently being made up by trade with the rest of the world’.

“And this week, the boss of one of Britain’s big retailers — JD Sports — is reported as saying that Brexit has turned out to be considerably worse than he feared.

Peter Cowgill, speaking to the BBC’s World at One, echoed the concerns of exporters and importers across the country.

He said: “I actually think it was not properly thought out.

“All the spin that was put on it about being free trade and free movement has not been the reality.

“The new system and red tape just slows down efficiency. The freedom of movement and obstacles are quite difficult at the moment. I don’t see that regulatory paperwork easing much in the short term.”

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Pointing at the tariffs incurred on JD Sports’ goods imported from East Asia when they go to the firm’s stores in Europe, he claimed there is no true free trade with the bloc and hinted that opening a big warehouse distribution centre in mainland Europe “would make a lot of economic sense”.

While he said JD Sports’ existing warehouse in Rochdale, Greater Manchester would remain open, “it would mean the transfer of a number of jobs into Europe”.

Mr Cowgill estimated such an EU facility would employ about 1,000 people.

Mr Benn, nearing the end of his Twitter thread, asked: “And the Government’s response?”

New UK-EU trade rules came into force on January 1.

More than a month later, with complaints from British importers and exporters still mounting, the UK issued a statement admitting it knew some businesses are “facing challenges with specific aspects of our new trading relationship” and vowed to provide the necessary support “to trade effectively with Europe”.

It added: “That’s why we are operating export helplines, running webinars with experts and offering businesses support via our network of 300 international trade advisers.”

But “these things won’t deal with the problem”, argued Mr Benn.

The Labour MP said: “Checks, bureaucracy, rules of origin, paperwork and extra costs are a fundamental part of trading with the EU as a third country (which is what we now are).”

He concluded: “So instead of offering webinars to businesses whose job has been made harder, when is the Government going to address the fundamental cause of all of this and start building a new and better trading relationship with the EU?”

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