BREXIT – A BRAVE NEW WORLD
Brexit is not just about leaving the European Union
but what we do in the future.
The current rules on trade, travel, and business for the UK and EU will continue to apply during the transition period ending on 31 December 2020.
The UK will go through some fundamental changes – change that businesses of all sizes will need to carry out in facing the impelling and brave new world which Brexit offers with regards to making proactive choices to include the right planning into your business strategy.
Preparing your business
From 1 January 2021 you will need to make customs declarations to move goods into and out of the EU. You should:
- Get an EORI number if you do not already have one
You’ll not usually need an EORI number if you only:
- provide services
- move goods between Northern Ireland and Ireland
If you use a post or parcel company they’ll tell you if you need an EORI number.
You’ll need an EU EORI number if your business will be making customs declarations or getting a customs decision in the EU. Get this from the customs authority in the EU country where you submit your first declaration or request your first decision.
- decide how you want to make customs declarations and whether you need to get someone to deal with customs for you.
decide how you want to make customs declarations and whether you need to get someone to deal with customs for you
After 31 December 2020 you’ll need an EORI number that starts with GB to move goods to or from the UK.
Winning Arguments For Brexit
Britain has long been wary of the European Union’s projects, which Leavers felt threatened the U.K.’s sovereignty: the country never opted into the European Union’s monetary union, meaning that it used the pound instead of the euro.
It also remained outside the Schengen Area, meaning that it didn’t share open borders with a number of other European nations.
If Britain and the EU cannot come to an agreement regarding a future relationship, they will revert to the World Trade Organization (WTO) terms.
Brexit Economic Response
Exports hit record high ahead of Brexit: Sales of UK goods to EU fall 0.9% but soar 14% to the rest of the world
In a sign that Brexit has not held back trade, UK companies sold £689 billion of goods and services overseas last year, up 5 per cent on 2018, according to the Office for National Statistics.
Goods exports were up 6.4 per cent to around £372 billion as a 0.9 per cent fall in sales to the EU was more than offset by a 13.6 per cent rise to the rest of the world.
China is now Britain’s third largest export market behind the US and Germany having leapfrogged France, the Netherlands and Ireland.
UK exports to BRICS
Because of the comparative ease of trading with the EU, British businesses have been slower than some other countries in seeing the huge potential of Brazil, Russia, India, China and South Africa– the so-called BRICS.
But Britain outside the EU is free to pursue its own trade deals and exports from the BRICS now account for £27.1 billion according to the Office for National Statistics, or 5.56 per cent of total UK exports.
The UK signed its first Brexit-trade deal with Japan.
This is just the beginning for Global Britain
UK secured a “historic” first trade deal since quitting the European Union following an agreement with Japan worth a massive £15 billion economic boost over the next 15 years, paving the way towards the UK joining a wider 11-nation trade deal, known as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) which is a free trade agreement (FTA) between Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, Peru, New Zealand, Singapore and Vietnam accounting for around 13 per cent of global GDP worth more than £110 billion.
The UK-Japan trade deal means 99 per cent of exports to Japan will be tariff-free and goes far beyond the existing EU deal and secures new wins for British businesses, such as more protection for goods with geographical indications, including Yorkshire Wensleydale and Welsh lamb, boost car and rail manufacturing jobs at major investors in the UK like Nissan and Hitachi through reduced tariffs on parts coming from Japan, and provide more liberal rules of origin and will allow producers of coats, knitwear and biscuits to source inputs from around the world for exports to Japan.