LONDON – Some businesses said Friday that costs and paperwork are hampering trade between Britain and the European Union as the reality of the U.K.’s post-Brexit trading relationship with the bloc takes hold.
Britain left the economic embrace of the 27-nation bloc, the final stage of Brexit, at the end of 2020. A trade deal that took effect Jan. 1 allows Britain and the EU to trade in goods without quotas or tariffs.
But that is a far cry from the seamless, hassle-free trade the U.K. enjoyed while it was part of the EU's single market. Companies face new expense and red tape, including customs declarations and border checks.
While fears of huge queues of trucks forming at English Channel ports were unrealized during the quiet Christmas and New Year's 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. DPD said up to 20% of parcels had incorrect or incomplete data, meaning they had to be returned to customers.
“The EU-U.K. Trade and Cooperation Agreement resulted in more complex processes and additional customs data requirements for parcels destined for Europe,” the company said in a statement. “This, along with delays and congestion at U.K. ports for channel crossings, has placed extra pressure on our turnaround and transit times.
“In view of this unprecedented set of circumstances, we believe that it is only right to pause and review our road service into Europe, including the Republic of Ireland,” the company said.
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.