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Published
Dec 17, 2020
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No-deal EU trade "will be pricey for UK fashion" - GlobalData

Published
Dec 17, 2020

If the UK is unable to strike a deal with the EU for trading terms after this year, the cost to the fashion industry could be huge an analyst has said. And Hannah Abdulla, Apparel Correspondent at GlobalData, said that a no-deal Brexit could be “the straw that breaks the camel’s back” for many companies after a year in which they been battered like no other year before.


Reuters



Tariffs associated with trading under World Trade Organisation (WTO) rules could add almost £1 billion to the UK's trade with the EU, according to calculations by the UK Fashion & Textile Association.

And the problem is particularly acute because nearly 75% of UK fashion and textile exports go to the EU. But that also means there would be repercussions for EU fashion businesses too. 

“For clothing and footwear retailers reliant on EU supply, the WTO terms would mean increased scrutiny at ports and borders, which could lead to more paperwork and significant delays,” GlobalData said.

Abdulla added that 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,” she said.

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