BUSINESS REPORT
BREXIT GUIDANCE: ADDRESSING THE TOP CONCERNS
KEY DATES FOR THE BREXIT PROCESS: 31 January 2020 - The UK left the EU and entered the transition period
30 June 2020 - The current deadline to extend the transition 31 December 2020 - The current end of the transition period
As the UK marked its official departure from the European Union earlier this year, along with the start of a transition period that is due to run until 31 December 2020, Dr Adam Marshall, director general of the British Chambers of Commerce, said: “In our business communities, this historic moment will bring a mixture of regret for some and celebration for others – but this is just the end of the beginning, not the beginning of the end. “Decisions made during the next phase of negotiations will influence the
business environment for decades to come. Businesses are likely to face significant changes in the way they trade, both in Europe and across the world. “Our business communities are pragmatic and want to move on from the emotional arguments around Brexit that have stymied confidence and investment for so long. They want to work with ministers to get the details right on issues like customs, regulation and immigration – and they are desperate to avoid more of the cliff-edges that have affected their operations in recent years.’’ The Withdrawal Agreement provides for business-as-usual trading
arrangements between the UK and the EU during the transition period until the end of 2020. Businesses should not experience rule changes, require new licences, or
face new trade frictions in this time. Currently, guidance is focused on no-deal outcomes and firms need
clarity, with plenty of time for implementation. Here, we round up key areas of concern, and address how they may affect member businesses.
TRADE WITH THIRD COUNTRIES Trade with third countries with whom the UK traded under EU agreements may be affected. The UK requires the consent of those countries to continue ‘business-as-usual’ trade. The UK and EU are both committed, via the Withdrawal Agreement, to
working with those countries to ensure this. But businesses still do not have a complete picture about how these trade agreements will apply after 31 January. Firms need this information gap to be closed before Brexit.
TARIFFS AND CUSTOMS FOR IMPORTS AND EXPORTS Businesses want an agreement that minimises frictions and new costs, be they from tariffs or elsewhere. Businesses will need training and support during 2020 for any changes being implemented. The BCC is calling on ministers to provide answers on what additional
procedures – and therefore costs – businesses could face when trading between Great Britain and Northern Ireland, particularly in the unwelcome event that a new agreement with the EU cannot be reached before the end of 2020.
PORT CAPACITY AND POTENTIAL HOLD-UPS The potential imposition of customs checks by the UK and ‘new’ third countries following 31 December 2020 could result in delays for businesses
20 inbusiness APRIL/MAY 2020
importing and exporting goods, which would also affect other consignments coming through the same port.
REGULATION The application of industrial standards – often designed by international organisations like ISO, CEN and CENELEC – allows UK businesses to comply with regulations, avoid product failures or recalls, and enable entry to new markets. BCC supports the continued membership of standards-setting bodies at the European level by the British Standards Institute (BSI).
DATA Businesses have gone through a major period of transition to become GDPR complaint. Therefore, they will not want to undergo any large-scale change. As such, the EU and the Government should conclude a data adequacy agreement as quickly as possible to ensure the continued free flow of data between businesses.
IMMIGRATION Unless there is an extension to the transition period, freedom of movement will end after 31 December 2020. How a new immigration system would work - and how businesses can employ EU workers domiciled either within or outside the UK - is yet to be defined.
MOBILITY AND RECOGNITION OF QUALIFICATIONS Businesses will require clarity on any additional legal requirements around the use of skilled workers who live in the EU, but work part time or on a consultancy basis in the UK. They also need to know if the current system of reciprocal recognition of professional qualifications will continue to apply.
TRADE IN SERVICES Post-transition, EU market access for UK firms in the services sector will be more limited than under current arrangements, as per the UK’s new status as a third country. Market access will be based on ‘equivalence’, which means recognising each other’s regulations and can be withdrawn with 30 days’ notice Currently, equivalence does not cover basic business banking products
and services such as bank lending. It remains unclear whether this will impact UK firms’ access to finance or other financial products and services.
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