Helen tabled an adjournment debate yesterday to continue holding the government to account over their Brexit 'strategy'.
Helen raised concerns about the rules of origin which the OECD estimates would add 24% to the export costs of selling into the European market – wiping out local firms in her constituency who export to Europe.
Leaving the customs union would be disastrous for the UK and our manufacturing industry. Outside of the customs union, we may have to pay tariffs and would certainly have to comply with the rules of origin – a bureaucratic procedure to show where all the components in a product come from – when we export into the EU market. The tariffs vary – many are around 5%-10% – but the OECD estimates that the rules of origin can add 24% to costs.”
Some exporters find the bureaucracy of the rules of origin so burdensome that they prefer to pay the tariffs and this would have a significant effect on big manufacturing industries which have complex integrated international supply chains - including pharmaceuticals such as Glaxo in Barnard Castle if we were to leave the customs union. Furthermore a leaked Treasury document predicts that our GDP would fall by some 4.5%.
You can watch the Adjournment Debate here.