Burning mattresses twice. Hundreds of pounds in extra costs to export a beef lasagne. Own-brand chicken curry hit by tariffs.
These are some of the potential consequences that lie in store for Britain when it starts its new economic relationship with the EU in 2021, unless the U.K. and the bloc find solutions during this year’s trade talks, according to the Confederation of British Industry, which represents 190,000 businesses.
The scenarios outlined by the CBI, in a report titled “The Red Tape Challenge” published Monday, would occur under a limited free trade agreement between Britain and the EU. They are a sign of the economic disruption that would flow even if Prime Minister Boris Johnson achieved his chief negotiating aim of securing a zero-tariff, zero-quota deal with the bloc akin to that enjoyed by Canada.
“All efforts must be made in these talks to save exporters time and money, avoiding new paperwork, costs and delays,” Carolyn Fairbairn, director-general of the CBI, said in an e-mailed statement. “This will protect the U.K.’s global competitiveness, jobs and growth.”
Most of the upheaval would come from companies having to comply with two separate regulatory regimes, filing new customs paperwork and losing easy market access for services. Avoiding this disruption will require comprehensive deals and cooperation, the CBI said.
The CBI’s examples arising from regulatory divergence—which was touted by Britain’s chief negotiator David Frost as a major benefit of Brexit last week - include:
Such disruption could be averted if Britain and the EU agreed to mutual recognition of their standards and assessment processes, the CBI said.
On customs, the CBI identified:
For services, the report warns of:
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