LONDON, July 10 (Reuters) - Britain's retail industry on
Friday urged UK and European negotiators to reach a post-Brexit
trade deal, warning that without tariff-free trade, consumers
face higher prices from next year.
The sector has already announced thousands of job losses due
the coronavirus pandemic as wary shoppers stay away from the
high street, and the next stage of the Brexit process poses a
further challenge.
Britain left the EU in January and is currently in a
standstill transition period with the bloc to give the two sides
time to fix a new relationship in everything from trade to
security.
Last week's round of talks was cut short, with both sides
saying that, while they wanted an agreement, they had yet to
overcome the gulf in positions that could see Britain leaving
the transition period without a trade deal.
Four-fifths of UK food imports come from the EU and EU
imports also play a major role in supply chains for fashion,
homeware, and other retail sectors.
In May, the UK government published its new tariff schedule,
which would apply from Jan. 1 2021 if a deal was not agreed.
Under the schedule, 85% of foods imported from the EU will
face tariffs of more than 5%, including 48% on beef mince and
16% on cucumbers. The average tariff on food imported from the
EU would be over 20%.
Given the highly competitive nature of retail, the industry
could not absorb all these increased costs, meaning the public
would face higher prices, the British Retail Consortium (BRC)
said.
“Many UK shoppers experienced disruption in the run up to
(coronavirus) lockdown; without a deal, the public may face an
even bigger challenge at the end of the transition period," said
Andrew Opie, the BRC's director of food and sustainability.
"With the clock ticking down to 31st December, the
government must put consumers first and agree a deal that avoids
tariffs and minimises the impact of non-tariff barriers."
UK retailers, already struggling with high rents, business
taxes, tight margins and online competition, were particularly
hammered by the lockdown and data shows shoppers are reluctant
to enter stores even as restrictions ease.
(Reporting by James Davey; Editing by Toby Chopra)