LONDON (Reuters) – Most British companies have faced trade disruptions with the European Union since Brexit, and many expect the problem to last for some time, according to a poll released on Saturday.
A trade agreement between London and Brussels that came into force on 1 January has meant that some companies have had to deal with the new bureaucracy and rules.
The London First / EY survival survey, conducted in February, found that 75% had experienced some disruption, although 71% said they felt prepared for the changes.
Nearly half, 49%, said they expected it to continue in the long term, while almost a third said they had stopped negotiating with the EU and countries that were not covered by the renewal agreements.
The findings echo other surveys that indicate companies have struggled with their supply chains, along with other border and regulatory issues, since the new trade agreements went into effect.
Prime Minister Boris Johnson has said the disruption is mainly due to “teething” problems that would be reduced as companies were controlling the new system.
“Clearly, British trade disruptions with the EU go beyond the teething problems with the new regime,” said John Dickie, acting executive at London First.
“If the government is to successfully defend global Britain, it must redouble its efforts to secure our trade relationship with the EU.”
The survey of 1,040 companies found that 29% of companies reported that their cost base had increased, and half of those companies said those costs should be passed on to customers.
However, 26% reported that they had a better understanding of how to access new markets and 24% considered the new trade agreements to be an opportunity to diversify their activities.
Reports by Michael Holden; Edited by Angus MacSwan