Fergus McReynolds
“One of the biggest issues was the rules of origin and understanding how that was going to affect their trade into Europe,” he says.
“In reality, the TCA is a zero-tariff relationship as long as your goods qualify under the rules of origin provision.”
The obstacle course of international trade
In such a diverse sector, it is clear that the lived experience of manufacturers so far has varied considerably, influenced in part by their business model, the sector and their relationship with supply chains and EU clients.
An allegory that Make UK use is to view the international trade of goods as an obstacle course with the TCA representing a tall vertical wall at the end.
“Some manufacturers would have got over the wall, some will need more time to get over it but some won’t be able to do it,” continues McReynolds.
“It tends to be business models that aren’t supported by the TCA and that’s predominantly a distribution issue.
“For those businesses that have had a little bit of experience, and who have a strong relationship with their European suppliers, some of the pressure has come off. But it remains a more costly and longer process.”
Professor David Bailey at the University of Birmingham co-authored the report Manufacturing and Brexit for the UK in a Changing Europe, published in June 2020, and has written extensively on the subject.
Professor David Bailey has written extensively on the subject of Manufacturing and Brexit
“While the deal is a deal and is welcome, there is still extra friction, so there is an extra cost,” he says.
“There’s always lots of other things going on – electrification of the auto industry and disruption from Covid-19 – and none of that does anything to improve the competitiveness of British manufacturing.”
Professor David Bailey
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