Sunak must ease Brexit trade frictions with EU side deals, business leaders say

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Rishi Sunak should consider a series of side and additional deals with the EU to ease ongoing post-Brexit trade frictions, business leaders have warned.< /p>

Almost two-a-third of British exporters say selling to the EU has become even more difficult in the last year, according to the British Chamber of Commerce (BCC).

The main business group has called for a series of deals with Brussels – on carbon taxes, VAT deals and food controls – to soften the impact of Boris Johnson's trade deal.

< p>A BCC Brexit report found that 60% of UK businesses trading with the EU say it is now more difficult than over a year ago. Only 18% of exporters to third countries say the situation has become more difficult.

The new study – The Trade and Cooperation Agreement: three years later – also warns of "New red tape problems loom, as UK and EU regulations diverge further.

Business leaders have called for a new additional deal with the EU that either eliminates or reduces the complexity of forms required by small businesses to export food.

The BCC also called on Mr Sunak to consider a VAT deal like Norway's, which would exempt small businesses from the obligation to have a tax representative for the tax inside the bloc.

And with the EU's decision to introduce a carbon border tax regime – which requires importers to provide data on carbon use – the government has also been urged to merge its carbon pricing systems with Brussels to avoid red tape.

Dover has experienced continued disruption since the introduction of Brexit controls

More than 80% of small and medium-sized businesses surveyed by the BCC were unaware of the impact of the EU border carbon adjustment mechanism.

And 70% are unaware of new UK controls on food imports from the EU, which should eventually be implemented implemented from February 2024 after several delays.

“There are many things we can do to improve our current trade agreements, but growing concern...