In response, some luxury brands have been forced to establish compliance centers in Europe, diverting investment and jobs away from the United Kingdom.
Beyond the panorama of the policies, there are several broader challenges that have affected the sector, since consumers press trust, while the inconsistent application on the border has led luxury brands that fight with export even after agreements have been made for trade without problems.
The conditions around the commercial relationship of Great Britain with the EU have several challenges for luxury brands, with delays, increases to costs and paperwork, and rates and rules of origin hinder trade, according to the Commercial Agency of the United Kingdom, Walpole. Particular challenges on the value added tax, returns and sending samples have been raised as areas where progress could be made.
Particular challenges on the Value Added Tax (VAT), the performance and sending of samples have been raised as areas where progress could be made.
Walpole, in its new 'trade with Europe' report that describes the 'Brexit effect' in the luxury sector, recommended a series of measures that the United Kingdom government could take, in association with the industry to improve commercial relations.
These include looking for more bilateral commercial agreements, similar to the United Kingdom Agreement-Uitalia agreed before in 2023; Organize an agreement with third -party logistics companies to standardize processes; negotiate an increase in the threshold of € 150 VAT; support companies in the United Kingdom that seek to export through the fiscal system; and reach a sanitary and phytosanitary agreement (SPS) with the EU.
These measures should also include the support of a consumer confidence campaign to recover European clients and stop the proposed increases for paperwork and the introduction of physical controls in food that enters the United Kingdom from the EU.
Walpole's research has found when it counts the conditions of the global market, EU exports are 43 % lower than they would have been without Brexit.
He asked the United Kingdom Government to join the Pan-Euro-Mediterranean Convention to support automotive and textile exports.; introduce a new digital labeling scheme to reduce complexity; and gather loading and messaging companies to offer a consistent approach to commercial rules.
Fiber2Fashion News Desk (DS)
