As Temperatures Soar, Trade Friction Is Hotter Than Sun: Logistics is critical to UK-EU trade, and so it is vital that the passage of goods between the two is made as seamless as possible. The comments were made by Caroline Read, Deputy Ambassador, UK Mission to the EU during a meeting in Brussels on Thursday (25 June) with business group Logistics UK’s Chief Executive Ben Fletcher to discuss the UK-EU trading relationship.
The meeting with the Deputy Ambassador was one of a series Mr Fletcher held during the day with senior diplomats and industry stakeholders to identify ways that the industry can help to ease frictions and improve trading partnerships for UK businesses. The meetings come in the week Logistics UK launched a campaign to drive trade-led growth as a result of its analysis showing how a lack of alignment with key trading partners, including frictions resulting from Brexit, has held back the UK economy by an estimated £12 billion1.
Analysis for Logistics UK from independent transport economists MDS Transmodal also shows in the ten years since the Brexit referendum, UK exports have fallen significantly both to the EU and globally – UK exports to the EU are down 15.9% by volume while exports to Rest of World fell by 37.2%.
“Trading conditions have changed significantly in the 10 years since the Brexit referendum,” commented Fletcher following the meeting, “yet the EU remains our biggest market for goods exports. Discussions with the Deputy Ambassador centred on the integral role our sector plays in facilitating billions of pounds of trade and how best to address both the current challenges and significant opportunities. It is clear that the role of the logistics industry is at the heart of the UK government’s thinking, and the upcoming EU-UK summit provided a focus for discussions on anticipated changes to the SPS checking regime, scope for amendments to the 90/180 day limit on working within the EU and the benefits of investment in digital technology for customs and export documentation, among other issues.”
Caroline Read, Deputy Ambassador, UK Mission to the EU said, “The EU is our closest partner and biggest market, and reducing friction in the way goods move between us is firmly in our national interest. That’s why the Government and UK Mission to the EU are getting on with delivering the agreements struck at last year’s Summit—from SPS to energy—to cut costs for business, support jobs and make our trading relationship work better for people on both sides of the Channel.”
“Being in Brussels is a reminder of the international trading opportunities that are on the UK’s doorstep,” continued Fletcher, “and there is a real enthusiasm here to rebuild a closer trading relationship with the EU. By fixing the friction surrounding existing trade, £12 billion could be channelled into the economy, driving growth and raising living standards. Removing Brexit red tape with our closest trading partner would be a great start and go a long way to addressing this challenge.
Fletcher also held exclusive meetings with Raluca Marian, Head of the International Road Transport Union (IRU) Delegation to the EU; Luisa Santos, Deputy Director General of business group BusinessEurope and Aodhán Connolly, Director of the Northern Ireland Executive Office Brussels.
“I would like to thank Caroline, Raluca, Luisa and Aodhán for making the time to meet with me and my Logistics UK colleagues today,” concluded Fletcher. “It is clear that we share plenty of common ground and are passionate about the mutually beneficial outcomes of boosting trade between the UK and Europe. We look forward to developing our relationships further and continue to urge the UK government and the EU to focus on removing non-tariff barriers with what remains our largest trading partner at the EU-UK Summit later this year.”
Logistics UK is one of the UK’s biggest business groups, representing logistics businesses which are vital to keeping the UK trading, and more than seven million people directly employed in the making, selling and moving of goods. With decarbonisation, new technology and other disruptive forces driving change in the way goods move across borders and through the supply chain, logistics has never been more important to UK plc. Logistics UK supports, shapes and stands up for safe and efficient logistics, and is the only business group which represents the whole industry, with members from the road, rail, water and air industries, as well as the buyers of freight services such as retailers and manufacturers whose businesses depend on the efficient movement of goods. For more information about the organisation and its work, please visit logistics.org.uk
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