LONDON (Reuters) – Most British companies have faced disruptions in trade with the European Union since Brexit, with many hoping the problem will last for some time, according to a survey published on Saturday.
A trade agreement between London and Brussels, which went into effect on January 1, meant that some companies had to deal with new bureaucracy and rules.
The Survation for London First / EY survey, conducted in February, found that 75% had experienced some disruption, although 71% said they felt prepared for the changes.
Almost half, 49%, said they expect this to continue in the long term, while almost a third said they stopped trading with the EU and countries not covered by rollover agreements.
The results reflect other research that indicates that companies have struggled with their supply chains, along with other border and regulatory issues, since the new trade agreements came into operation.
Prime Minister Boris Johnson said the disruption was mainly due to “initial” problems, which would decrease as companies became more familiar with the new system.
“It is clear that disruptions in UK trade with the EU go beyond the initial problems with the new regime,” said John Dickie, acting chief executive of London First.
“If the government wants to successfully defend Global Britain, it must redouble its efforts to fix our trade relationship with the EU.”
The survey of 1,040 companies revealed that 29% of companies reported that their cost base had increased, with half of those companies saying that these costs would have to be passed on to customers.
However, 26% reported having a better understanding of how to access new markets and 24% saw the new commercial arrangements as a chance to diversify their activities.
Reporting by Michael Holden; Editing by Angus MacSwan