Liam Smyth, from the British Chambers of Commerce, tells a Commons International Trade Committee about the Brexit deal: 'We're becoming increasingly aware of businesses that are simply turning away from international trade. We worry the pace of this is going to accelerate.'
Fergus McReynolds, from manufacturing industry representatives Make UK, says 'there's a lot we can do under the structures of the TCA to improve' the situation regarding barriers to trade. He adds: 'Our priority is making sure those supply chains thrive in the new relationship.'
Liam Smyth says firms are seeing a 'significant increase' in costs of moving freight and from extra paperwork. 'A factor is the availability of drivers prepared to come from the EU to drop a load in the UK, then take another load back. Empty trucks tell you they're not happy.'
Long queues are a problem because many truckers are paid by km travelled, not by the hour. 'When they were standing stationary...they weren't earning. They got their fingers burnt and they're determined not to get burnt again. The impact of that is higher cost of moving freight.'
Fergus McReynolds says firms trading with the EU face a complex scenario on VAT: 'The Single Market looks very much like a Single Market from the inside, but it doesn't look like a Single Market from the outside because each individual country has their own set of rules on tax.'

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More from @nickgutteridge

9 Feb
1/ Some EU frustration at UK griping over trade problems and suggestions Brussels needs to improve its attitude to make the relationship work better. There's a feeling of déjà vu, that the UK never really accepted the practical reality of the deal it wanted and still doesn't.
2/ In particular there's exasperation that the UK is moaning about the deal not including arrangements that it ruled out itself to keep its own red lines intact. It's seen as a pattern of behaviour - first there was visa-free travel for musicians, now it's shellfish.
3/ EU sources say the lack of provisions on shellfish exports was brought up numerous times in the talks as a concern. But the UK refused to engage, as it did on wider SPS issues, over fears of 'being drawn into the EU's regulatory sphere'.
Read 9 tweets
9 Feb
Gove compares the first weeks of UK-EU relations to turbulence after take off. 'Eventually you reach a cruising attitude and the crew tell you to take your seatbelts off and enjoy a G&T and some peanuts. We’re not at the G&T and peanuts stage yet but I’m confident we will be.'
Ex UK negotiator Lord Frost says the EU 'is still adjusting somewhat to the existence of a genuinely independent actor in its neighbourhood'. Adds: 'I hope we’ll get over this. It is going to require a different spirit probably from the EU, but I’m sure we are going to see that.'
* Altitude!
Read 6 tweets
8 Feb
Michael Gove says the figure given for exports from the UK to EU falling by 68% since the start of the year 'was erroneous and based on a partial survey'.
Cabinet office official Emma Churchill says 'trade flows have held up exceptionally well since the end of the Transition Period' despite a dip in early January. This month total outbound across all UK ports is 98% of the equivalent last year and inbound trade is at 99%, she says.
* This should have said GB ports, as the figures quoted relate to GB-EU trade. Jessica Glover, another Cabinet Office official, separately said GB-NI trade flows are 'back to normal and indeed are slightly higher now than they were in the equivalent week last year'.
Read 4 tweets
8 Feb
Michael Gove: 'It is still of concern that as things stand the EU reserve the right potentially to return to Article 16 in this area. I think there needs to be a realisation on all sides this isn't some arcane bit of diplomatic procedure, this is real consequences on the ground.'
Michael Gove says issues arising from the NI Protocol 'can be solved pragmatically'. E.g: 'It doesn't threaten the integrity of the EU Single Market to have bulbs ordered from a wholesaler in Scotland or England, which will then be planted in a garden in Belfast or Ballymena.'
Gove adds: 'If people put a particular type of integrationist theology ahead of the interests of the people of NI they aren't serving the cause of peace and progress. There are very good people in the EU's institutions and architecture who take incredibly seriously these issues.'
Read 6 tweets
7 Feb
1/ As the dust settles, how is Ursula von der Leyen being judged over the EU's vaccine rollout? There are varying views, but all agree that the Commission has made mistakes, and all equally agree its President is under no pressure whatsoever to resign. thetimes.co.uk/article/the-eu…
2/ There is widespread frustration across Member States about the pace of the EU's vaccines programme. There is harsh criticism, too, of VDL's working methods which involve relying on a very small number of advisers. Though she's hardly the first leader to face that accusation.
3/ Some critics say the Commission saw an opportunity to 'act like a Government' in the hope it would take the glory for the vaccines rollout. But now that the programme has run into trouble it doesn't want to take the responsibility in the same way national governments have to.
Read 10 tweets
17 Dec 20
1/ Brexit talks nugget: The two sides have wrapped up negotiations on public procurement. The UK will give European companies bidding for public sector contracts 'equal treatment' to British ones and vice-versa, Michel Barnier briefed MEPs. He called it 'a very good agreement'.
2/ Throughout the talks the UK had been insisting the public procurement provisions should be based on WTO rules, but it has shifted that stance late in the day. The UK sought generous terms in this area with Japan and is doing so in talks with the US, Australia, and New Zealand.
3/ EU figures estimate public sector spending makes up about 15 per cent of GDP in most developed economies, so this is a really important issue for both sides. European firms have huge financial interests in the UK - from running rail franchises to making the new blue passports.
Read 4 tweets

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