Would Uk Businesses Gain In Eu Reloca on

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Will there be a deal between the UK and the EU? With less than seven weeks before the UK leaves the custom unions and single market, the nego a ons appear to struggle. As the meline for an agreement has repeatedly changed, the date for a European parliament vote on a deal is constantly pushed. Sources concede that Brussels may not be able to get the agreement ra fi ed un l 28 December. Three days before the end of the transi on period, it becomes essen al to ask whether Bri sh companies will survive leaving the single market. Indeed, according to the Bri sh Chambers of Commerce, over half of the companies have not taken any of the steps recommended by the UK government to prepare for Brexit. Many could argue that the failure to reach an early deal has also impacted their ability to plan for changes in the rela onship with the EU. Would UK businesses benefit in a continental reloca on to avoid Brexit challenges?

The loss of beneficial trade tariff s

Michel Barnier has always been clear that avoiding a no-deal Brexit was the utmost priority of the negotiation. However, he also insists that a deal should not come at the cost of safety and peace between trading partners. Unfortunately, as signifi cant gaps remain to be addressed, Downing Street warns that it is “en rely possible that nego a ons will not succeed”. As days are numbered before the end of the transition period, businesses can’t aff ord to ignore the prospect of a no-deal. In the event the nego a ons are unsuccessful, the UK will have to apply tariff s and quotas to all goods coming from the EU. The EU will treat the UK as a third country, applying the relevant tariff s and quotas to British goods. The Confedera on of British Industry expects90% of the UK’s good exports into the single market to be aff ected by tariff s. The bo om line, British exports would become more expensive to EU consumers, and therefore less a rac ve. Understandably, reloca ng inside the EU would secure trade tariff s and advantages.

Shipping processes

How will goods travel between the UK and the EU? The UK government predicts long border queues and significant delays in the event of a no-deal. For lorry drivers, delays are only one of the many challenges they will face. Indeed, as France plans to establish immediate border controls a er Brexit, the government es mates that up to 85% of lorry drivers would not have the necessary documentation for interna onal shipping. It becomes essen al for UK businesses to reach out to shipping partners who are prepared for the red tape challenges that could follow a no-deal.

A hos le environment

Many entrepreneurs have already considered reloca ng inside the EU to escape the Brexit impact on their businesses. Many have considered or already made the move, with a preference for interna onal hubs that support SMEs such as Ireland, Cyprus and Germany. Sabine Harnau, the founder of From Scratch, explains, the lack of clarity about a Brexit deal combined with a post-referendum hos lity y forced her to relocate. She’s concerned about commi ng to long-term cross-border rela onships in a situa on where nobody knows what Brexit means. In conclusion, the UK is at risk of facing a deep Brexodus movement. Businesses that are the most likely to struggle in a no-deal Brexit have already been looking at relocation op ons to secure EU trading advantages, avoiding increased tariff s and complex shipping processes. But even a Brexit deal can’t erase the post-referendum hos lity that’s driving interna onal talents away.