Brexit and the continuing trade meltdown ... chaos reigns in British ports

Industry groups have warned that the collapse of British trade with the European Union will continue next summer after the failure to recruit up to 30,000 customs employees, despite the government's confirmation of the resumption of normal services.

Writer Philip Inman said - in a report published by the British newspaper, The Guardian - that delays and confusion in UK ports led to 40% of trucks crossing the English Channel with empty containers.

This threatens to lose hundreds of small and medium-sized exporters of their livelihood, and inflict millions of pounds on the government.

The warnings come on the heels of the most dramatic monthly drop in UK exports to the European Union since records began 20 years ago.

Exports decreased by approximately 41%, as thousands of trucks failed to enter the European Union, mostly due to disruptions in customs due to a lack of compliant paper transactions.

The companies also reported that the lack of customs officers meant that they were unable to respond to requests from customers in the European Union, or that their goods had been returned at an exorbitant cost.

Decreased imports

Last January - the first month since leaving the European Union on terms agreed by Boris Johnson's government - official data showed that exports of goods to the 27-nation bloc decreased by 5.6 billion pounds ($ 7.8 billion), while imports decreased by about 30%, or the equivalent of 6.6 billion pounds (9.2 billion dollars).

Cabinet Affairs Minister Michael Gove has responded to critics of the UK’s failure to prepare for border checks by delaying a pre-agreed timetable for imports, under a new scheme;

That controls on imports of animal products will be postponed from April until next October, and checks will be carried out on most other commodities only at UK ports from next January.

But Brussels insisted that exporters in the United Kingdom comply with European Union rules on imports, forcing many British companies to find a customs officer and a veterinarian to certify that animal products are safe to enter the European Union.

Land Transportation Association CEO Richard Burnett said the large number of exporters who need help completing paperwork means customs officers are turning down the business.

In response to the trade data, the Minister responsible for Britain's relationship with the European Union, Lord Frost, said there is a unique set of factors that indicate that we are likely to see some unusual numbers (talk of last January).

He added that these impacts are now beginning to diminish, and that overall freight volumes have returned to normal levels for more than a month now.

The writer quoted the head of the British Ports Association, Richard Ballantyne, as saying that most ports witnessed a recovery in shipments in recent weeks, indicating that the delay in import checks led to postponing the problem instead of solving it.

A delay at the UK border will stymie growth for at least the rest of the year (Getty Images)

More obstacles

According to the head of public affairs at the Road Transport Association, Rod Mackenzie, with 40% of the containers traveling to the European Union without goods, the shipping figures have failed to show the full impact of the new formalities related to Brexit on the UK border.

McKinsey explained that the appointments of customs officers should increase by about 30,000, bringing their number to nearly 50,000 to deal with the additional regulations, adding that delays and loss of exports will continue until more customs officers are trained.

Leading to a delay until summer at least.

Small and medium enterprises are likely to be hit hardest by the scarcity of employees who play an important role in dealing with the mountain of new paperwork imposed on companies wishing to continue trading in Europe.

The writer mentioned that ministers have asked local chambers of commerce to train new customs officers, but this process is clearly being hampered by a lack of information and training for the chamber’s staff.

The head of the British Chamber of Commerce in Germany, Alex Altmann, said customs employees' salaries are low;

Which means that employment was difficult, explaining that the extension of customs facilities at the borders of the United Kingdom until the end of 2021 is an admission by the government that the border business model is not working, and imports from the European Union are still more than 30% lower than last year, and companies are struggling to deal With the new official procedures.

In total, the government has provided more than 80 million pounds to support the customs brokerage sector for trade with the European Union in 2021, and the authority has designed this stimulus plan to be used flexibly by the sector to enable it to increase its capabilities as it sees fit. Relevant, whether that includes recruitment, training, or better use of information technology.

The British Chambers of Commerce informed the ministers that the difficulties that companies face on the ground are more than just initial problems, and that the disruption of trade flows between the United Kingdom and the European Union continued until this March.

Some economists predicted that the delay at the UK's borders would impede growth for at least the rest of the year, while an office responsible for the Treasury’s official economic forecast (Office of Budget Responsibility) announced that the Christmas Eve Brexit deal would result in a loss of 4 points. Percentage of the UK's long-term growth.