TRADING WITH EUROPE
OPPORTUNITY KNOCKS FOR EXPORTERS IN POST-BREXIT WORLD Wandsworth exporters are adjusting to a new reality following an eleventh-hour Brexit deal struck days before the transition period ended on December 31. The decision ended months of wrangling over future business rules and fishing rights between the UK and the EU. Under the terms of the new agreement, import tariffs between the UK and EU have been removed and UK goods can be sold without quotas in the EU market. However, these concessions come at a cost. UK exporters face numerous regulatory hurdles that in all likelihood will make it more expensive and burdensome to do business in Europe. On fisheries, the EU has agreed to give up 25% of its existing quotas in UK waters over a transition period of five and a half years, after which there will be annual renegotiations.
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Meanwhile, although the UK no longer has access to the EU’s internal energy market, the idea is to have new arrangements in place by April 2022 to ensure that trading via interconnectors – power cables that link the UK with parts of Europe – is smooth and efficient. Adam Marshall, director general of the British Chambers of Commerce (BCC), said: “After four long years of uncertainty and upheaval, businesses will be able to muster little more than a muted and weary cheer.
“While firms will welcome the agreement of a new foundation for UK-EU trade, they were faced with the gargantuan task of adapting to new arrangements with scarcely a week before they took effect. “Businesses need to digest the contents of the deal and consider what its provisions mean for the movement of goods, people and data across borders, as well as for their supply chains and partners. “We repeat that it is the responsibility of government to give firms clear, precise and detailed guidance so that they can make the required changes quickly. Far too many details and procedures have been left, literally, to the last minute. “Let’s not forget that many businesses are already on their knees from the impact of the coronavirus crisis, and most will have fewer resources available to implement the necessary changes with furloughed staff.” The BCC said governments on both sides of the UK-EU divide must recognise the impossible task they have set businesses and give them time and breathing space to adjust to new realities. “It is normal for free trade agreements to come with phasing-in measures, and this one should be no different,” said Adam Marshall. “It is now time to bring the political drama of the last four years to an end, and to replace it with pragmatism and determination to make the new UK-EU relationship work. The agreement can and must be a starting point for deeper cooperation as we restart, rebuild and renew our economies. “With greater clarity on the terms of trade, businesses can plan, invest and look once again towards new opportunities.” The UK government continues to update Brexit transition advice for businesses.
For more information visit https://www.gov.uk/transition
“Businesses need to digest the contents of the deal and consider what its provisions mean for the movement of goods, people and data across borders, as well as for their supply chains and partners.
