BREXIT: Effects on Trade One Year Later
It has been over a year since the United Kingdom (UK) officially left the European Union (EU) on December 31, 2020. The impact of BREXIT on international trade has been significant, with changes in trade relations, tariffs, and regulations affecting businesses and industries across the globe. In this article, we will examine the effects of BREXIT on international trade one year after the official exit.
The UK’s exit from the EU has affected trade relations between the two entities. After BREXIT, the UK became a third country for the EU, meaning that trade between the UK and the EU is now subject to customs procedures, tariffs, and other regulatory requirements. This has resulted in additional costs and delays for businesses involved in cross-border trade, with some companies relocating their operations to the EU to avoid these issues.
One of the most significant impacts of BREXIT on international trade has been the introduction of tariffs. If the UK and the EU do not reach a free trade agreement, the UK will be subject to the World Trade Organization (WTO) rules, which include tariffs on certain goods. This has resulted in increased costs for businesses, which has been felt across a range of industries, including agriculture, manufacturing, and automotive.
BREXIT has also led to regulatory changes, with the UK no longer being subject to EU regulations. This has led to some divergence between the UK and the EU in terms of regulations, which has affected businesses involved in cross-border trade. For example, the UK’s decision to diverge from EU regulations on food safety has led to delays in the export of certain products, such as shellfish, from the UK to the EU.
Supply Chain Disruptions
Another impact of BREXIT on international trade has been supply chain disruptions. The introduction of customs procedures and other regulatory requirements has led to delays at borders and ports, which has affected the flow of goods between the UK and the EU. This has had a knock-on effect on businesses that rely on just-in-time delivery, with some companies stockpiling goods to avoid disruptions.
In conclusion, one year after the UK’s official exit from the EU, the impact of BREXIT on international trade has been significant. Changes in trade relations, tariffs, and regulations have affected businesses across a range of industries, resulting in increased costs, delays, and supply chain disruptions. As the UK and the EU continue to negotiate their future trade relationship, businesses must remain vigilant and adapt to the changing landscape of international trade. This may include reviewing supply chain processes, developing contingency plans, and engaging with customs agents to simplify their customs clearance processes.
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