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Half of UK companies expect long-term outage investigations after Brexit.




LONDON, April 3 (Reuters)-The majority of British companies are facing a halt in trade with the European Union after Brexit, and many expect the issue to persist for the time being, according to a survey released on Saturday.

The trade agreement between London and Brussels, which came into force on January 1st, meant that some companies had to deal with new bureaucracy and rules.

A London First/EY’s Survation survey conducted in February found that 71% said they were ready for change, but 75% experienced some disruption.

Nearly half (49%) say they expect it to continue in the long run, and nearly a third say they have stopped doing business with the EU and countries not covered by rollover agreements.

The findings reflect another survey showing that companies have struggled with their supply chain along with other border and regulatory issues since the launch of the new deal.

Prime Minister Boris Johnson said the “teeth” problems that would be mitigated when companies get their hands on a new system are mainly arising.

“It is clear that the EU and UK trade breaks have gone beyond the problems of the new regime,” said Acting Representative John Dickie of London First.

“If the government is to successfully defend Global Britain, it must double its efforts to fix trade relations with the EU.”

According to a survey of 1,040 companies, 29% of companies reported an increase in their cost base, and half of those companies said they had to pass these costs on to their customers.

However, 26% said they better understand how to approach new markets, and 24% viewed the new trading method as an opportunity to diversify their activities. (Reporter Michael Holden, edited by Angus MacSwan)

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