BRC says Brexit must focus on fairness for the consumer

The British Retail Consortium (BRC) has urged Government negotiators to "put consumers first" during Brexit talks to ensure prices are kept low once the UK leaves the European Union. And it has warned that clothing prices, in particular, could shoot up if the UK fails to negotiate a favourable Brexit.

In a letter to Secretary of State for International Trade Liam Fox the BRC said that the Government’s strategy must focus on finding opportunities for lowering import costs as well as avoiding any increase in tariffs.

"We will be supporting the Government through this complex and difficult process, helping them analyse how increased cost pressures on retailers could mean higher shop prices and identifying any opportunities for new trade deals that could benefit individuals and families," said BRC chairman Richard Baker.

The consortium has warned of the potential for prices of food and clothing, among other items, to rocket if the UK loses access to the single market and is forced to use World Trade Organisation (WTO) rules post-Brexit. For example clothing and footwear would attract tariffs of 11-16% versus the current zero-rating for all EU imports.

It would also make sourcing outside of the UK much more expensive. The import cost of women’s clothing from Bangladesh, for instance, would be 12% higher.

However the BRC has said that Brexit would provide some opportunities to negotiate better deals outside of the UK but warns these can take a long time to materialise - free trade agreements typically take up to five or six years to negotiate.

"But other opportunities to liberalise trade could be realised more quickly. For example, the UK would be free to adopt its own scheme of trade preferences (GSP) for developing countries as soon as it leaves the EU," the BRC said.

As part of its A Fair Brexit for Consumers campaign, the BRC will also seek "an early end" to the uncertainty surrounding the rights of EU workers now residing in the UK. "The UK retail industry employs between 100,000 and 200,000 EU nationals, who make a huge contribution in every type of role from the boardroom to distribution centres and customer service. They deserve the reassurance that they will still be welcome here, whatever Brexit may bring," the BRC said.

Finally it will also call upon negotiators to only introduce domestic legislation that will promote growth and not wrap them up in unnecessary red tape "While retailers are happy to play their part in working for a constructive outcome to the Brexit talks, they will also be dealing with the impacts of a challenging economic outlook, intensifying competition and rapid structural change – making it considerably more difficult to protect consumers from the impacts of a greater regulatory burden," it said.