European trade


The view —from Europe


Tom Noad, President of the Milan-based British Chamber of Commerce for Italy, outlines the implications of a no-deal Brexit on the UK’s relationship with Italy


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THE EFFECTS OF A NO-DEAL Brexit won’t just be felt in the United Kingdom. They will resonate right across Europe, affecting a wide range of business issues from tariffs and trading arrangements through to skills and employment. Companies will still be keen to work with each other across borders, and British chambers of commerce within the EU are providing both local and UK firms with advice to make sure that this happens. Tom Noad is President of the Milan- based British Chamber of Commerce for Italy, which has a total two-way trade flow with the UK of some £44 billion, accounting for 3.5 per cent of UK trade globally. His organisation has 250 members representing all sizes of business and has, since the beginning of 2017, been holding a series of events advising local and international companies and organisations how best to prepare for Brexit. Trading companies in both


countries need to be looking at ways of mitigating the challenges of a no-deal including signing up for trusted trader schemes and Authorised Economic Operator status, he says. “Doing this will help to ease


some of the problems that may be encountered at the frontier. That’s the most practical advice we can give at the moment. “The most extreme situation will be that you’re faced with all kinds of difficult customs and duty consequences, and you need to make the kind of facilitative arrangements that can reduce the delays crossing the EU border.”


Luckily, only a small percentage


of goods shipping from the UK to Italy are perishable and so heavily vulnerable to these potential hold-ups. Single market customs clearances are handled at an EU rather than member state level, so the Italian authorities have only limited input into policy on this. What, though, about Italian


companies, whose trade with the UK amounts to about £24 billion yearly? “There is a widespread feeling here of Brexit fatigue among businesses,” adds Tom.


“It’s only when you really get right


up to the deadline that people start to think maybe it actually will happen. When we had the last deadline back at the end of March, we were suddenly inundated in the last couple of weeks with help requests. “When the deadline was extended


to October, it all went quiet again. But we are expecting a new round of enquiries from small and medium sized enterprises about what to do at the end of the month. Generally speaking, larger companies have already put no-deal plans into effect. The largest have war-gamed different scenarios and some have already taken evasive action.” As far as employment and skills


are concerned, the 60,000 or so UK nationals currently resident in Italy are likely to retain permission to stay and continue working, assuming that the guarantees given by the Italian government before the March deadline remain unchanged. “The situation becomes more


difficult for those UK workers living in Italy whose job requires them to travel between other European nations. In


these cases, the ability to work across borders will depend on the approach those other nations adopt, which may not necessarily be helpful. “Added to that is the issue


of recognition of qualifications, especially for services providers. Currently, most UK qualifications are automatically recognised in other member states, but after Brexit, UK residents may have to re-qualify under the rules of the relevant local jurisdiction or risk not being able to work.


“It will depend on what sector


the professional is working in. There needs to be a pragmatic approach to this, and the good thing about skills recognition is that it’s usually done on a member state rather than EU- wide basis.”


He adds: “If Italy chooses to do so,


it can make life for UK nationals who wish to continue living and working here easier. I think it’s a question of reciprocity – in other words, will the UK make post-Brexit life significantly more difficult for the 700,000 Italians living there? My personal feeling at the moment is that, based on the approach in the run-up to the March deadline, the Italians are likely to be more generous than other nations.”


The most extreme situation will be that you’re faced with all kinds of difficult customs and duty consequences


8 www.glasgowchamberofcommerce.com


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