The Commission is a time-bound research project examining the impact of the UK's exit from the European Union, the Trade and Cooperation Agreement (TCA) and the Windsor Framework.
UK SMEs, which make up nine-tenths of the fashion industry there, are bearing the brunt of post-Brexit trade challenges and barriers, according to a report by the Independent Commission on UK-UK Relations. EU. Complicated customs procedures, tariffs and higher operating costs prevent UK brands and companies from competing effectively within the EU. EU fashion professionals have left the UK workforce.
Brexit has introduced barriers to trade that are particularly problematic for SMEs, notes the report titled “The future of fashion: how Brexit has reshaped the fashion industry and how to reposition the UK as an industry leader.”
Complicated customs procedures, tariffs and rising operating costs now prevent UK brands and companies from competing effectively within the EU, historically its largest export market.
As a result, UK exports to the EU have fallen sharply, while rising logistics costs and customs delays continue to impact production and sales.
Talent shortages further exacerbate these problems. EU citizens have left the UK workforce, while new visa requirements limit the ease with which UK professionals can work abroad. This has led to a decline in the collaboration opportunities that once drove innovation and a shortage of skilled workers in the UK.
Furthermore, young designers and graduates are losing access to internships and opportunities in the EU, affecting their global skills and diminishing the industry's future talent pool, the report observes.
The report recommends simplifying the cross-border movement of goods through better customs processes and simplified laws and regulations to help businesses, particularly SMEs, and increase the country's competitiveness in EU markets.
It suggests signing bilateral agreements to ease visa restrictions for creative professionals to facilitate international collaboration and support industry resilience, as well as provide greater opportunities for young workers in the fashion sector.
Reinstating value-added duty-free shopping for international tourists would incentivize spending in the UK, providing a critical boost to luxury fashion brands, it says.
UK SMEs also need financial assistance programs to cope with increasing costs and regulatory burdens that are difficult and time-consuming to address.
Finally, government investment in sustainable local manufacturing hubs would reduce reliance on EU imports, boost regional economies and advance the UK's sustainability goals, the report adds.
Fiber2Fashion News Desk (DS)
