Recent progress on Brexit makes encouraging news for retailers concerned about tariffs, but fundamental questions remain on the movement of goods and immigration policy.

Cross-Europe sourcing and supply chains have transformed the experience of millions of consumers in the UK over the past three decades for the better: they’ve given us access to better choice, availability and quality of non-food and food products.

“Securing tariff-free trade is particularly important for food as around 20% of products sold in a supermarket are imported from the EU”

There has been some encouraging progress in recent weeks in the Brexit negotiations. We’ve had agreement on a framework for a standstill transition period, and it’s great news that both sides have accepted the importance of a zero-tariff deal – both priorities in BRC’s Brexit campaign.

Securing tariff-free trade is particularly important for food as around 20% of products sold in a supermarket are imported from the EU and adding high tariffs would have a significant impact on hard-pressed consumers in terms of increased prices.

But there are other fundamental questions that remain unanswered.

Flow of goods

At the top of this list is how goods will continue to move uninterrupted across EU-UK borders after the transition period ends.

Securing tariff-free trade with the EU is only part of the equation for sustaining low prices and availability of goods for UK consumers.

High non-tariff barriers at our ports or on product standards could be equally as damaging to UK consumers as any hit from higher tariffs.

We’ve been clear that any friction in the flow of goods, particularly fresh and perishable ones, will lead to spoilage and gaps on shelves, reducing choice and shelf life for consumers.

As we set out in our Customs Roadmap, to tackle the challenges posed by the sheer scale and volume of goods that cross our borders, we need a deal on customs alongside supplementary agreements on regulatory standards, security, VAT, haulage, transit and on drivers, to ensure goods can continue to move from A to B as efficiently as possible.

Getting this right is essential to ensure UK consumers can buy the products they want at reasonable prices once the transition period comes to an end.

Skills needed 

Retailers also need a deal that helps them address the skills requirements of an industry undergoing profound transformation.

From distribution and stores to head office, our EU colleagues make a vital contribution to British retailers’ ability to deliver the goods consumers want when they want them, and they deserve certainty and security to continue living and working here.

That’s why the UK’s future immigration system should take an evidence-based approach as we seek to understand both the current and future needs of the industry.

“The risk of not achieving a deal with the EU is enormous and its impact would be felt immediately by millions of us”

Against a backdrop of a tightening labour market and tough competition for workers, the priority must be a simple, demand-led system for the future, which strikes the best balance between getting the right skills in place and a migration system that complements our domestic labour market.

There may be opportunities for consumers from new trade deals with new markets, but the risk of not achieving a deal with the EU is enormous and its impact would be felt immediately by millions of us from the moment the transition period ends.

The clock is ticking, and while we have some certainty we need to see more detail on how our supply chains will work.

Shopping will be one of the immediate litmus tests of the success of Brexit and what we pay for products in 2021 will depend on the deal negotiated in the next six months.