Latest news with #TradingwithEurope
Fibre2Fashion
22-05-2025
- Business
- Fibre2Fashion
UK-EU trade ties conditions pose challenges for luxury brands: Walpole
The current conditions around Britain's trading relationship with the European Union (EU) present several challenges for luxury brands, with delays, increases to costs and paperwork, and tariffs and rules of origin all making trade more difficult, according to Walpole, a UK-based trade association representing the interests of British luxury brands. In response, some luxury brands have been forced to set up fulfilment centres in Europe, diverting investment and jobs away from the United Kingdom. Beyond the policy landscape, there are several broader challenges that have hit the sector, with consumers losing confidence, while inconsistent enforcement at the border has led to luxury brands struggling with exporting even after agreements to smooth trade have been made. The conditions around Britain's trading relationship with the EU present several challenges for luxury brands, with delays, increases to costs and paperwork, and tariffs and rules of origin all making trade more difficult, according to UK trade body Walpole. Particular challenges around value-added tax, returns and shipping of samples have been raised as areas where progress could be made. Particular challenges around value-added tax (VAT), returns and shipping of samples have been raised as areas where progress could be made. Walpole, in its new 'Trading with Europe' report outlining the 'Brexit effect' on the luxury sector, recommended a series of measures that the UK government could take, in partnership with industry to improve trading relations. These include pursuing further bilateral trade agreements, similar to the UK-Italy deal agreed earlier in 2023; arranging an agreement with third-party logistics firms to standardise processes; negotiating an increase to the €150 VAT threshold; supporting UK businesses seeking to export through the tax system; and striking a sanitary and phytosanitary (SPS) agreement with the EU. These measures should also include backing a consumer confidence campaign to win back European customers and stopping the proposed increases to paperwork and introduction of physical checks on foodstuffs entering the United Kingdom from the EU. Walpole research has found when accounting for global market conditions, EU exports are 43 per cent lower than they would have been without Brexit. It called on the UK government to join the Pan-Euro-Mediterranean Convention to support automotive and textile exports.; introduce a new digital labelling scheme to reduce complexity; and bring together freight and courier companies to deliver consistent approach to trade rules. Fibre2Fashion News Desk (DS)
Yahoo
20-05-2025
- Business
- Yahoo
New report shows UK luxury exports to EU down 43% post-Brexit
Walpole, the body representing British luxury industry, has urged governmental intervention to address the obstacles hindering trade with the EU for the luxury sector following Brexit. The sector, valued at £81bn ($108bn), is facing challenges post-Brexit, as detailed in Walpole's latest Trading with Europe report 2025. The study, conducted by Frontier Economics, revealed that following the UK's departure from the EU, luxury exports have suffered with an average drop of 43%. This "Brexit effect" is substantial, given the industry's role in sustaining over 450,000 jobs and contributing £14.6bn to the Treasury. Fashion and accessories exports have taken the hardest hit, plummeting 64%, while interior design, home goods and craftsmanship exports have fallen by 50%. The complexities of UK-EU trade relations have been exacerbated by increased tariffs from the US and diminished demand from Chinese consumers. The study illustrates a shift in export dynamics, with EU exports dropping from 42% of total luxury exports in 2017 to 32% in 2022. Despite this decline, the EU market remains paramount for UK luxury goods, outpacing both the US and Asia, which each account for 22% of exports and the Gulf region at 14%. Post-Brexit trade barriers have introduced increased paperwork, higher costs and delays in exports due to new certification demands and customs intricacies. It claims that these challenges have disproportionately affected brands that maintain high customer service standards. Inconsistent rule enforcement across EU member states and ports further complicates matters by introducing unpredictability into costs and timelines. Complications with VAT refunds and reclamation processes have led some businesses to incur losses on returned items. Marketing efforts have also been stifled by difficulties in distributing product samples to journalists and influencers. Changing sustainability standards and labelling requirements have also injected operational uncertainty into business planning. In response to these challenges, some British luxury brands have set up distribution centres and commercial operations within the EU to redirect investment away from potential UK growth. Walpole CEO Helen Brocklebank stated: "The British luxury sector has incredible growth potential, with a projection to reach £125bn by 2028. "However, to achieve this ambition, we cannot afford to have one arm tied behind our back. Strong links and favourable trading with Europe remain essential to reaching this forecast, alongside our success in other global markets, and key to supporting craft-led and high value manufacturing in the UK." To address issues within the luxury industry, Walpole has made a series of recommendations to the UK government, including joining the Pan-Euro-Mediterranean Convention to support key exports, implementing a digital labelling system, negotiating better VAT terms with the EU and securing an SPS (Agreement on the Application of Sanitary and Phytosanitary Measures). "New report shows UK luxury exports to EU down 43% post-Brexit" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
