Trading with the EU under a no-deal Brexit will be pricey for UK
fashion, GlobalData has warned, adding that the country’s textile and
fashion firms should therefore be weighing up other markets to potentially
trade with.

It comes amid a back-and-forth between the UK and EU over a long-awaited
trade deal, with some fine details hindering the chances of a deal being
reached before the deadline.

“Brexit talks have reached a critical point and the UK fashion industry
is clinging onto the hope a deal will be clinched at the last minute,”
Hannah Abdulla, apparel correspondent at GlobalData, said in a
statement.

“With many businesses just about surviving the Covid-19 pandemic, having
to contend with a no-deal Brexit may well be the straw that breaks the
camel’s back.”

According to calculations by the UK Fashion & Textile Association,
tariffs associated with trading under World Trade Organisation (WTO) rules
could add almost a billion pounds to the cost of trading with the EU in the
event of a no-deal Brexit.

Almost 75 percent of UK fashion and textile exports currently go to the
EU.

Abdulla continued: “UK textile suppliers need to start looking beyond EU
shores to other countries the UK has trade deals with. Currently, 29 of 70
existing deals the UK was automatically part of with the EU have been
rolled over for 2021, including major garment manufacturing hubs such as
Vietnam, Tunisia, Egypt and Morocco, and just this week, Mexico. Talks with
the US, Australia and New Zealand are ongoing.

“It’s important that businesses are proactive in seeking alternative
trading opportunities in order to minimise disruption.”

Photo credit: Pexels



Source link

Author

Write A Comment

//dooloust.net/4/3584464