Burning mattresses twice.
Pricey beef lasagne.
Own-brand chicken curry hit by tariffs.
Some of the weird things facing the U.K. and EU post-Brexit, per @CBItweets latest report... 1/ bloomberg.com/news/articles/…
Pricey beef lasagne.
Own-brand chicken curry hit by tariffs.
Some of the weird things facing the U.K. and EU post-Brexit, per @CBItweets latest report... 1/ bloomberg.com/news/articles/…
The CBI (long criticized by Johnson for being too pro-EU) has published a paper explaining the new red tape Brexit will cause, and made recommendations for how to avoid it. See full doc linked here, led by @NicoleSykes_ 2/
The red tape they talk about flows from Britain leaving the Single Market and Customs Union.
Their report `[respects] the parameters for the negotiations set down by the Prime Minister' 3/
Their report `[respects] the parameters for the negotiations set down by the Prime Minister' 3/
Some v interesting case studies in it, especially on effects of UK-EU regulatory divergence.
Take car manufacturing. Extra £350k-£500k of cost per vehicle if have to get type approvals in both UK and EU 4/
Take car manufacturing. Extra £350k-£500k of cost per vehicle if have to get type approvals in both UK and EU 4/
Or cosmetics. Firm employing thousands in UK would have to spend £2m to register its shampoos, dyes, conditioners etc with dual UK and EU systems.
(Would be nice to know what £2m is as % of their total cost base) 5/
(Would be nice to know what £2m is as % of their total cost base) 5/
Or poultry farming. Would have to follow EU rules even if UK scrapped them post-Brexit, to keep exporting to EU.
Could even need two separate production lines, one for UK, one for EU 6/
Could even need two separate production lines, one for UK, one for EU 6/
Or burning mattresses. Mattress makers selling to UK and EU have to set fire to their products to test safety.
If safety rules between UK and EU aren't deemed equivalent post-Brexit, might need to burn it twice 7/
If safety rules between UK and EU aren't deemed equivalent post-Brexit, might need to burn it twice 7/
What's the solution to this?
It's going to require mutual recognition of things like testing and assessment processes.
Will the EU grant this? A big q for the negotiations 8/
It's going to require mutual recognition of things like testing and assessment processes.
Will the EU grant this? A big q for the negotiations 8/
And then there's customs paperwork.
Here's the new red tape for exporting a fresh beef lasagne to the EU post-Brexit 9/
Here's the new red tape for exporting a fresh beef lasagne to the EU post-Brexit 9/
Customs declarations and rules of origin paperwork are unavoidable. You need to prove what you're bringing across the border, and whether it qualifies for 0% tariffs.
Export Health Certificates could be avoided, but would likely require close alignment of UK-EU food rules 10/
Export Health Certificates could be avoided, but would likely require close alignment of UK-EU food rules 10/
The traffic cones slide from @the_brc's report last week also captures this element of cost 11/
And of course there's services. A key issue here is mutual recognition of professional qualifications.
Here's what an auditor would have to go through if they want to keep practising in the EU post-Brexit 12/
Here's what an auditor would have to go through if they want to keep practising in the EU post-Brexit 12/
Moral #1 is regulatory divergence carries costs, as well as potential benefits. Key argument of Brexit negotiator David Frost last week was benefits will > new costs 13/
blogs.spectator.co.uk/2020/02/full-t…
blogs.spectator.co.uk/2020/02/full-t…
Moral #2 is there's a lot more to negotiate than a `zero tariff, zero quota' deal this year. Tariffs will be only half the problem.
And that's before we even start on Northern Ireland.. ends/
bloomberg.com/news/articles/…
And that's before we even start on Northern Ireland.. ends/
bloomberg.com/news/articles/…
