Just been talking to someone about long term effects of Brexit and it got me thinking about all these industries that are at a standstill at the moment, in shock over the new red tape.
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While it’s true that many industries are at a standstill and are struggling to export now, that’s just the beginning.
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Border issues will eventually get sorted. IT systems will work (more or less) and we’ll get the hang of these new formalities.
And at that point, many companies will realise that the extra red tape and these extra costs are not going away.
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Short 🧵on my key point from today's webinar on rules of origin.
Great questions from 1.3k (🤯) ppl in the audience and always such a pleasure to listen to @MichaelGasiorek and @pwrighting share their expertise on trade and origin.
We hear so much about rules of origin but it's important to understand they are not just one thing - rather a set of requirements.
I always talk about them in terms of 3 different layers of origin requirements.
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Layer 1⃣ - product-specific rules.
You need to make sure your product meets rules for that particular product (based on your commodity code) under the specific trade agreement. There are different rules:
✅for different products
✅under each/most agreements.
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The new border procedures, including SPS formalities:
1⃣ cause delays both at the premises (before the goods move) and at the border
2⃣ are expensive
3⃣ can make the product unattractive to EU buyers - esp for perishable goods (you want your meat to be fresh)
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Customs processes are difficult enough but SPS ones are a pain. Read a couple of examples 👇 (h/t @vivamjm )
"The Eurotunnel needs to process 500 lorries an hour but only has the veterinary capacity for 150 an hour."
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I think most of the current "teething" problems are a direct result of the UK Gov CHOOSING NOT TO be clear about the new non-tariff barriers for the last 5 years.
These are niche issues but not that niche - it was a clear choice to pretend like they don't exist and focus on the sunny uplands.
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HMRC and DEFRA have done a fair job trying to communicate the upcoming changes in the second half of 2020 (perhaps the tone could have been more urgent).
But by then it was too late (plus everyone was pre-occupied with covid)
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