1/ (Another) No-Deal Preparedness Thread - Exporting to Non-EU Countries
A question I get a lot from followers in business is what a No-Deal Brexit would mean for UK exports to non-EU countries like the US, Korea or Japan.
Some food for thought 👇🏽
A question I get a lot from followers in business is what a No-Deal Brexit would mean for UK exports to non-EU countries like the US, Korea or Japan.
Some food for thought 👇🏽
2/ First and most important: This should be a conversation you are having with your lawyers, your importers and their lawyers.
Your business is unique. Random idiots on the internet (like me) are not a substitute for bespoke advice.
Your business is unique. Random idiots on the internet (like me) are not a substitute for bespoke advice.
3/ Tariffs - Do you trade under an EU FTA?
The EU has FTAs with dozens of countries. These may allow your exports to those countries to enter at a reduced tariff rate or with streamlined procedures.
The list of the EU's trade agreements is here:
en.wikipedia.org/wiki/European_…
The EU has FTAs with dozens of countries. These may allow your exports to those countries to enter at a reduced tariff rate or with streamlined procedures.
The list of the EU's trade agreements is here:
en.wikipedia.org/wiki/European_…
4/ Tariffs - Cont.
The UK Government is working hard to rollover all of those FTAs so your exports continue to be covered by them after Brexit but its success is not automatic (see below).
If rollover is delayed, your goods may suddenly face tariffs.
politico.eu/article/eu-tra…
The UK Government is working hard to rollover all of those FTAs so your exports continue to be covered by them after Brexit but its success is not automatic (see below).
If rollover is delayed, your goods may suddenly face tariffs.
politico.eu/article/eu-tra…
5/ Services
Similarly to the above, some of the EU's FTA's provided expanded services market access.
If you are for example a dredging firm and CETA is not immediately rolled over, you may not be able to provide dredging services to Canada until it is.
Similarly to the above, some of the EU's FTA's provided expanded services market access.
If you are for example a dredging firm and CETA is not immediately rolled over, you may not be able to provide dredging services to Canada until it is.
6/ Government Procurement
Last one on FTAs. One thing the EU does through its FTAs is try to secure access to the government procurement markets of its partners.
If you are a UK firm and the FTA rollover is delayed, you may not be able to bid on certain contracts.
Last one on FTAs. One thing the EU does through its FTAs is try to secure access to the government procurement markets of its partners.
If you are a UK firm and the FTA rollover is delayed, you may not be able to bid on certain contracts.
7/ Mutual Recognition Agreements
The EU has signed a network of MRAs with major trading partners, identifying areas where conformity assessments in each will be considered valid in the other.
In other words, if the US says your pacemaker is fine, the EU accepts that.
The EU has signed a network of MRAs with major trading partners, identifying areas where conformity assessments in each will be considered valid in the other.
In other words, if the US says your pacemaker is fine, the EU accepts that.
8/ MRAs - Cont.
This allows certain products which might otherwise require a certificate from a laboratory in the importing country to be tested in the exporting country instead.
It is not automatic the countries in question will automatically extend MRA coverage to the UK.
This allows certain products which might otherwise require a certificate from a laboratory in the importing country to be tested in the exporting country instead.
It is not automatic the countries in question will automatically extend MRA coverage to the UK.
9/ MRAs - Cont.
The text of the US-EU MRA for example (see below) is EU specific.
It will be up to the US if they want to accept UK certification post-Brexit. If not, your goods may need US certification.
eur-lex.europa.eu/legal-content/…
The text of the US-EU MRA for example (see below) is EU specific.
It will be up to the US if they want to accept UK certification post-Brexit. If not, your goods may need US certification.
eur-lex.europa.eu/legal-content/…
10/ EU Transhipping
Currently, a lot of UK goods headed for non-EU destinations pass through the EU anyway, making use of Rotterdam, Antwerp or just the road and rail links.
In a No-Deal Brexit, this could become a lot more complex depending on the method of transport.
Currently, a lot of UK goods headed for non-EU destinations pass through the EU anyway, making use of Rotterdam, Antwerp or just the road and rail links.
In a No-Deal Brexit, this could become a lot more complex depending on the method of transport.
11/ Insurance and Banking
If your goods pass through the EU on the way to 3rd countries, keep in mind there may be some initial disruption to the ability of UK firms to insure them in the EU or to offer banking services.
If your goods pass through the EU on the way to 3rd countries, keep in mind there may be some initial disruption to the ability of UK firms to insure them in the EU or to offer banking services.
12/ Inputs
Even if you export to non-EU countries, it's worth checking the entire length of your value chain to see if there's an EU connection.
At least initially, the UK is likely to replicate the EU Goods schedule which means some of your inputs may face UK tariffs.
Even if you export to non-EU countries, it's worth checking the entire length of your value chain to see if there's an EU connection.
At least initially, the UK is likely to replicate the EU Goods schedule which means some of your inputs may face UK tariffs.
13/ Disruption at the ports/roads/ferries
Even the most optimistic predictions about No-Deal accept there are going to be some teething problems at the borders.
With half the UK's trade going from the fast lane to general admission, it's inevitable.
Plan accordingly.
Even the most optimistic predictions about No-Deal accept there are going to be some teething problems at the borders.
With half the UK's trade going from the fast lane to general admission, it's inevitable.
Plan accordingly.
14/ Last note:
The UK's WTO Schedule concerns UK TARIFFS and not the tariffs UK goods pay when travelling to other places.
As an exporter of goods, the certification or lack thereof of the UK WTO Schedule should not impact you.
The UK's WTO Schedule concerns UK TARIFFS and not the tariffs UK goods pay when travelling to other places.
As an exporter of goods, the certification or lack thereof of the UK WTO Schedule should not impact you.
