It is a year since the FTA published their Bexit manifesto which we outlined in our blog post, 10 Post Brexit Must Haves For Haulage Companies. So..........what has happened since then and is the UK’s position any clearer?
- Article 50 has been activated and the UK is scheduled to leave the EU on Friday, 29th March 2019.
- An agreement between the UK government and the EU over the divorce bill was announced in December, which included continuation of the Common Travel Area (CTA) between in UK and the Republic of Ireland.
- A transition period of up to 21 months will be implemented after the 29th March 2019. Although there is some speculation that this may be extended or even open-ended.
At face value, the December agreement does not give enough detail to allow those involved in trade between the UK and the Republic of Ireland to plan effectively their operations after Brexit, with information likely to be determined only through the final deal.
Mixed messages continue to circulate about what Brexit means for us, our customers and the entire UK logistics and supply chain industry. We’re hoping that the UK government will negotiate a good deal for both the importing and exporting of goods into Ireland and the rest of the EU but we are still no closer to knowing exactly what sort of deal the UK government is seeking.
Whilst passengers crossing the Irish Sea will benefit from the CTA, the prospect of a ‘Hard’ Brexit’; withdrawal from the single market and Customs Union, means that freight between the UK and Ireland will face increased checks at port on both sides on the Irish Sea. All imports and export will likely be subject to World Trade Organisation’s (WTO) most favoured nation tariffs . Deliveries to the Republic of Ireland will therefore require some form of export/import customs clearance and/or fiscal reporting, along with duty and VAT payments. The result will almost certainly lead to increased cost and delay.
The second phase of negotiations will not focus on a future trade agreement between the UK and the EU, but on settling the UK’s withdrawal from the EU. Although the agreement must take into consideration the future EU-UK relationship, including trade.
There still remains too much uncertainty regarding the trade process once the UK finally leaves the EU, which makes it difficult to determine what effect it might have on your deliveries and the course of action that we and our customers might need to pursue.
We will continue to monitor the situation and release more articles and blogs as the situation becomes clearer. If you would like to receive email updates or further information, please sign up to our
2018 marks Cargocare’s 35th year serving the UK-Ireland-UK market - We are proud of our journey so far and look foward to the road ahead