Hard Brexit is announced, what will the implications be for your business?
Teresa May, outlined her Brexit priorities for when article 50 is invoked at the end of March. Firm in her remarks that Britain will leave the European Single Market and the Customs Union.
What does this mean?
By leaving the European Single Market which allows the free movement of goods, people, finances and services. Teresa May outlined that the UK will take back control of its borders and immigration. It will no longer be bound by EU rules and regulations, nor the European Court of Justice.
Moving away from full membership of the Customs Union, according to May will allow for the UK to strike deals with non EU countries and not be restricted by the external tariffs that are applicable through the current EU membership.
The UK wants a new "comprehensive free trade agreement", giving it "the greatest possible access" to the single market”.
What are the Implications?
The hard line approach to Brexit and setting out more clearly the direction the UK will take in its negotiations gives businesses more clarity. Yet there is still a very long and winding road to go down.
The European parliament chief negotiator, Guy Verhofstadt responded “The days of UK cherry picking and Europe a La Carte are over”
Teresa May’s tough stance on negotiations with Europe have clearly been outlined, yet the UK could still end up with more red tape, rising tariffs which will in turn effect businesses who export and import. Supply Chains could be severely impacted/disrupted and the prices of goods will very likely increase.
Contingency plans on how you can mitigate the costs in your supply chain should be worked on now. Contact WTA, we can provide you with the strategies you need to deal with the complex trading arrangements that are likely to be coming our way.