There are fewer than three weeks until the UK leaves the European Union (EU)’s single market and customs union. The current transition period will end on December 31st.
No agreement between the parties has yet been reached, leading to fears of a ‘hard’ exit, wherein the UK would immediately revert to World Trade Organization (WTO) terms with the EU.
The UK and EU are attempting to finalize the rules which will govern the future relationship between the UK and the EU and negotiate a free trade agreement, but negotiations have been troubled over issues of fishing, state aid, and how trade will flow through Northern Ireland.
If a new trade deal is not approved, the implications are expected to be significant.
Impacts of a No-Deal:
- If a new trade deal is not approved, then tariffs and border checks would be applied to UK goods traveling to the EU. This means we can expect higher costs and major shipping delays
- Confederation of British Industry (CBI) predicts that no-deal would mean that 90% of the UK’s goods exports to the EU would be subjected to tariffs
- UK goods entering the EU will face full customs control including customs declarations, animal product health paperwork, and some border checks. This means that your logistics partner must be current on documentation requirements
- France has said it plans to immediately implement post-Brexit border controls at its ports in the event of a no-deal
- The UK government has estimated that 50% to 85% of truck drivers would not have the correct documentation to enter the EU, and that long border crossing lines (up to 7,000 trucks) are expected
- While medicines are not subject to tariffs under the WTO rules, non-tariff barriers could hold up the movement of everything from the chemicals to the finished product ultimately delaying much-needed medicines
- More than 25% of all food consumed in the UK last year was supplied by EU countries, and a no-deal Brexit could mean a rise in prices
- Experts on both sides of the English channel have warned the UK to brace itself for a food shortage
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