Opinion / Jamie Waters
Cutting its cloth
The notion of closing borders is totally at odds with the melting pot that is the UK fashion industry, fuelled as it is by designers and makers from myriad cultural backgrounds. Indeed, few UK industries are as deeply tied to the European continent as fashion. But there are other important, potentially devastating economic factors at play here too.
This is why the fashion industry is pushing for the negotiation of a comprehensive EU trade deal that would avoid tariffs on goods. The British Fashion Council has cited estimates that a no-deal Brexit, switching from EU to World Trade Organisation rules, would cost the UK fashion industry between £850m (€1bn) and £900m (€1.06bn) a year, due to export and import tariffs on raw materials and finished products. When you consider the shoestring budgets that small brands are playing with, such tariffs could be the difference between staying afloat and going bust. Some brands have already taken practical measures to mitigate this: Studio Nicholson, a London-based label with a big customer base in Japan, has opened a warehouse in Portugal to house its Europe-made stock so that it needn’t touch down in the UK at all.
There’s an argument that Brexit could encourage UK brands to produce locally. The idea of bolstering homegrown manufacturing is appealing and the UK still has some great factories, especially for knitwear. But whether these sites are capable of taking on a big influx of orders is another matter; the UK’s factories have become much depleted in recent decades because many brands now produce their wares offshore. “Until we know what our trade deal with Europe is, it’s hard to comment on the possible threats or opportunities that our separation from the EU will bring,” says Patrick Grant, creative director of brands including E Tautz and Community Clothing. “But what I do know is that fashion’s long-established supply chains stretch across Europe and if we’re to stand the best chance of seeing the benefits then we need open the borders for goods.”