The UK’s imminent departure from the EU not only disrupts the political and institutional scene but has also brought upon an ambiguous mishmash of negotiation processes that affect trading laws and regulations. Whilst the brunt of Brexit will be largely felt by the UK, the trade impact on the EU economy will be likely small-scale compared to the effect it will have on the British trade.
Without a doubt, one of the economic policy areas that will be most affected is free trade. Because of the deep integration of the UK with the European Union, higher trade barriers are expected.
UK is one of the largest trade partners for the EU
Germany, Netherlands, Belgium and Ireland are some of the countries which will be most impacted by Brexit. Because of the EU’s deep trade ties, the negative economic impact will be likely felt by trading partners who mostly export goods than import from the UK.
Hard Brexit or Soft Brexit
Typically, hard Brexit is more favoured by the ones who voted Leave, as it gives the UK more jurisdiction over its borders and immigration, having the freedom to function independently. This means that the UK will be taken out completely from the single market and customs union. Soft Brexit, on the other hand, will still give the UK access in the European Single Market, reducing the impact of Brexit on the trading industry.
The Prime Minister’s proposed deal is leaning into hard Brexit as she aims to ‘take back control’ of the UK’s borders and laws. This may mean that the largest trading nations of the UK must expect new customs border costs and must take into account the time that will be spent on cross-border transactions.
No Confidence Vote Could Break Brexit Deal
Theresa May’s proposed withdrawal agreement has brought upon a leadership challenge and 48 no-leadership letters will trigger a Tory leadership contest. She claimed this to be a distraction and stated that a change of leadership will possibly result in confusion and the risk of UK not leaving the EU.
The aftermath of the Brexit referendum compels large and small businesses to expedite risk assessments for cross-border trade. Hooper & Co can provide a bespoke service to businesses of international trade and help you know the complexity of the regulations. Get in touch with us. Call us on (0)2476 343037 or fill out our form.