EU TRADE REMAINS A CHALLENGE It may be three years since the UK signed the Trade and Cooperation Agreement (TCA) with the EU setting out arrangements in areas such as trade in goods and services, intellectual property and public procurement. But doing business with the EU remains a problem for UK manufacturers, with 90% of them reporting that they are still finding it a challenge, according to a recent survey by the manufacturers’ organisation, Make UK. The EU is still the UK’s largest export market, with 74% of manufacturers exporting to the Union, but 64% of these exporters report that customs paperwork and border delays remain a major barrier, with logistics being an issue for over half (52%). More than a third of businesses (36%) say that demonstrating Rules of Origin of goods is difficult as they struggle to ensure that their goods meet the tariff-free rules of entry to the EU by showing they contain sufficient product of UK origin. In 2022, Britain’s manufacturing sector exported £230bn worth of goods to the EU – a 26% increase on 2021. The effects of the new arrangements on UK businesses has been varied, with one in three reporting that export volumes have increased moderately or significantly over the past two years, while 40% have experienced moderate or significant declines in exports. Accessing skilled EU workers remains a key challenge. Some 44% of UK manufacturers say that recruiting from the EU has become harder in the past three years, with the UK’s Shortage Occupation List of necessary skilled workers being slow to recognise the sector’s critical shortages. According to Make UK, British manufacturers want to see closer cooperation with the EU on business mobility to and from Europe – particularly around the arrangements for short-term working visas and where professional and technical qualifications can be recognised both in the UK and EU. Nearly four in five (77%) UK manufacturers believe that the UK and EU must collaborate to improve export procedures, customs administration and goods clearance. Greater cooperation on regulation is also required, with Make UK calling for the indefinite extension of CE marking for all UK manufactured goods. It is also calling for the Government to work with the EU to improve the TCA to make it easier to clear goods into and out of EU and UK. The organisation suggests that some UK companies are using the skills they have learned navigating the complex EU customs rules to expand into wider global markets. Nearly half (48%) of UK manufacturers now export to the US. “Since Britain left the EU,” says Make UK’s CEO, Stephen Phipson, “companies have had to deal with the new trade arrangements of the TCA merging with global disruption brought about by the Covid pandemic. Yet Britain’s manufacturers have powered through to build international trade in new markets while navigating through the minefield of challenges which still remain in trading with our closest partner, the EU.” The problems of trading with the EU will not go away unless the Government makes a concerted effort with our European partners to tackle the issues. Tony Sacks, Editor n COMMENT Are you investing in the potential of your workforce? Industry recognised courses from the BFPA Improves Safe Working Practices Increases Productivity and Performance Creates an Adaptable and Flexible Workforce BRITISH FLUID POWER ASSOCIATION bfpa.co.uk/training Please call 01608 647900 or email enquiries@bfpa.co.uk Improves Company Reputation Looking to source automation, power transmission and motion engineering equipment? www.drives-guide.com Drives&Controls Interactive Buyer’s Guide website
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