With the PM in Brussels, here is another reminder. On the deal vs no deal. And borders.
We need a deal. It’s in everyone’s interest. It will reduce tariffs (perhaps even full tariff/quota-free) and offer a range of other simplifications. BUT everything will still change
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One albeit (over)simplified way of looking at it is 👇
You have a border and what happens behind it.
⏺️Border barriers (friction, formalities, tariffs) and
⏺️Behind the border measures (regulation, alignment, cooperation etc)
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On the border barriers front, a deal would remove tariffs.
That's pretty much it.
Plus perhaps some additional simplifications, derogations (maybe some on SPS stuff depending on how far both parties want to go).
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A trusted trader scheme for GB - NI movements to avoid tariffs. Exit declarations from NI to be done by collecting data from transport and ferry companies.
On exit declarations, it's doable, the information will be there. I'm still not convinced that the UK Gov won't at some point need more info (i.e. that this is sustainable) but this is a compromise - no paperwork but some data collection.
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I'll wait for further details but it seems like the way the JC has dealt with the famous "at risk" category of goods was by going around it and putting in place a trusted trader programme?
More to follow once we hear from CDL/ see the release
1⃣ Hopefully it's obvious how important it is for businesses to understand which goods will be subject to tariffs (the goods at risk question). However it's starting to be less and less relevant as time goes by
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Whatever the "at risk" logic will be companies will need to provide some sort of proof that their goods/consignments meet the criteria.
What strikes me the most is the massive difference of language and approach when it comes to tariffs between the UK and the EU and the UK and everyone else.
Remember the 🇬🇧-shaped, best in class trade deals? What do you think they do?
Remember all the DIT tweets about how the continuity agreements will create £££ of opportunities? How things will be cheaper (ehm 👇). That's all tariff reduction.
Seriously, think of the hype around each trade agreement and the marginalisation of the importance of the EU deal - it's the same ppl
700 ppl recruited and trained by French customs. Deployed across ports, airports and train terminals.
Trials, operational guides, rehearsals and "orchestrated logistics sequences"
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What I really liked is that throughout the process they worked with the Eurotunnel, ferry operators and ports to understand the current process and use the waiting time that's already there to minimise the impact on lead times and "anticipate" formalities.
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As someone who speaks to, trains and advises companies on getting ready for Brexit I just want to say that this by @jdportes and @anandMenon1 is absolutely spot on!
Under normal circumstances, we all use mental shortcuts when speaking about incredibly technical matters to a non-technical audience but this is not what's happening here.
👇and the language used by many politicians is misleading for firms
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It matters now more than ever because of how little time we've got left to prepare.
In Jan companies won't need telling that friction is coming cause they will be able to see it when their goods are turned away from the border or when their agent increases fees.
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