UK companies exported sharply fewer goods to the European Union in January. That drop seems to have been triggered by brexit.
Figures from the UK transport trade association RHA show that exports fell by two thirds in January compared to a year earlier. The brexit means there is more paperwork involved in exporting goods to the EU, so many companies have decided to temporarily refrain from doing so.
RHA's top executive is calling for extra customs officers to support British companies with the extra paperwork. Ten thousand officials currently deal with this. That number should increase fivefold, the RHA said.
Waited too long
The Dutch-British Chamber of Commerce has also noticed that things are not going well at UK customs. Exporting goods to the UK would cause few problems. The other way round is a different story.
"What we hear a lot is that the UK government did not prepare business enough for brexit, especially small and medium-sized enterprises," Lyne Biewinga of the Dutch-British Chamber of Commerce told NOS. "They waited a very long time to prepare and when the deal came, it was too late."
Moreover, British companies have to fill in more paperwork for some products if they want to export to the EU than vice versa. From the EU, certain rules already apply since 1 January, while in the UK these requirements only take effect from 1 April.
Opening branch in the Netherlands
Last week, it was announced that hundreds of British companies were considering coming to the Netherlands because of brexit. Opening a branch in the EU would be a way for them to unwind paperwork and long waiting times at the border.
"We are working almost day and night to help British companies open a branch in the Netherlands," said Biewinga. "Especially British SMEs look to the Netherlands because of our good infrastructure, fast digital connections and highly educated and well English-speaking workforce. This makes the Netherlands one of the favourite location countries."
