As always with these delays, it's hard to tell whether the main reason is that the companies aren't ready and the gov is concerned about shortages
/1
Or is it simply because the gov isn't ready, the processes aren't in place and the infrastructure isn't there.
The other worrying aspect of that is that this is becoming a default response
/2
Our borders are virtually open, compliance is a question of preference yet the gov continues to be somewhat reluctant to implement checks.
Perhaps this is less of a delay and accident and more of a strategy. Perhaps the view is we don't actually need compliance.
/3
And the delays are a way of minimising the impact of the additional admin burden on companies and the public and hence minimising the visible impact of Brexit.
I'm starting to think that cause why else would the prep effort be so inadequate.
/4
As always, worth mentioning that we knew this was coming all along. The need to introduce checks, driver shortages etc. And all along industry bodies kept saying that more could be done to prevent the current outcome.
/5
It's not a big delay in the scale of things. It's just that it's becoming a pattern. Both in NI as well as in other terms of other borders.
And it's also in stark contrast to the Border 2025 plan.
/end
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On the other, as I told Sky News and @ChrisHorseman2 earlier today, constant delays and changing deadlines are creating a situation where it's getting harder and harder for businesses to keep track of what's changing and when.
/2
Meaning it's becoming really easy to miss something.
And we do have serious deadlines approaching. For example, Jan 2022 when customs controls will be introduced and full customs declarations will be due at the time of import.
/3
Important message - full customs declarations and checks still planned for 1 Jan 2022.
This means companies still need to get ready as postponed declarations will no longer be possible. And given the current level of compliance, there is a lot of work to be done in the next few months.
Speaking of customs compliance and border controls.
Received a reply this morning from one of these companies advertising their products on social media. Their website doesn't mention customs duties so wanted to check who covers them and where they ship from.
/1
They responded to say they ship from China and I shouldn't worry about customs duties or import VAT as less than 1% of their customers report that customs opened the package and charged taxes.
/2
That basically means that they declare their products as something else (0% duty and perhaps even lower VAT rate) and hope for the best. And clearly manage to get away with it.
And are also confident enough to talk about it openly...
/3
This week, @davidallengreen's question of whether an FTA was worthwhile got me thinking of how FTAs have changed over time.
A🧵with a lot of questions and very few answers.
/1
Back in the day (15/20/25 y ago) such questions were rarely asked.
The interpretation of “substantially all trade” was the name of the game and Singapore issues (gov procrm, TF, investment and competition) were still optional and not something that was included in all FTAs.
/2
The debate focused on Bhagwati’s stepping stones, @BaldwinRE's tit-for-tat or home magnification effect.
Questions on “fairness”, if at all asked, were mostly limited to tariffs. But there was also less of an expectation that FTAs would be fair/worthwhile for both sides.
/3
When costs increase there are various ways for companies (e.g. supermarkets) to respond to it without necessarily increasing prices - mostly temporary.
/1
The pressure on profit margins increases and even if it can be spread across the entire supply chain if that situation continues and if costs continue to rise, at some point something's got to give.
/2
Here the problem is that the extra costs are not going away (new formalities and requirements) AND there are new costs coming up (introduction of full formalities and checks on the UK side).