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British retailers warn significant disruption in supply chain over no-deal Brexit

Source: Xinhua| 2019-01-29 00:25:56|Editor: yan
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LONDON, Jan. 28 (Xinhua) -- "Just in time" supply chain will be significantly disrupted in the event of no-deal Brexit, warned the British Retail Consortium (BRC) Monday in a letter written to MPs.

British retailers are stockpiling where possible, and all frozen and chilled storage is already being used and there is very little general warehousing space available in Britain, according to the letter Xinhua obtained from the British retailers' industry group.

The letter highlights "the challenges for retailers and the consequences for millions of UK consumers" of leaving the EU without a deal at the end of March.

It says, British supply chains are closely linked to Europe, with nearly one third of the food in Britain coming from the EU. The situation is "more acute" in March as Britain produce is out of season, with 90 percent of lettuces, 80 percent of tomatoes and 70 percent of the soft fruit sourcing from the EU, warns the letter.

The impact of tariffs was also mentioned in the letter.

"Only around 10 percent of our food imports, a fraction of the products we sell, is currently subject to tariffs. So if the UK were to revert to WTO Most Favoured Nation status, as currently envisaged in the no-deal scenario, it would greatly increase import costs, which could in turn put upward pressure on food prices," it says.

The letter urges MPs to "find a solution that avoids the shock of a no-deal Brexit on March 29 and removes these risks for UK consumers".

The letter was co-signed by several British retail giants, including the chief executives of Marks & Spencer, Waitrose, Sainsbury, Asda and Morrisons.

Chairman and chief Executive of BRC as well as the bosses of Co-op, Costcutter, Lidl, KFC and McDonalds also signed the letter.

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