1/ A challenge in parsing Brexit news is that businesses are facing overlapping types of challenges that can be difficult to separate.

The key questions are:
1⃣ Given the model of Brexit chosen, could this have been prevented, and by whom?
2⃣ Can it get better?

2/ To put those another way:

"If you knew everything you needed to know and did everything right, is your existing business and delivery model still viable and competitive?"

The answer to that question determines if for you the problem is Brexit, or how Brexit was delivered.
3/ Some of the challenges at borders could have been prevented while still having the exact same model of Brexit (No Single Market, No Customs Union, but an FTA).

That they're appearing is an implementation failure and you can fully support Brexit but still be pissed about them.
4/ Examples include:

1) Government guidance and IT systems being ready earlier and/or easier to navigate;

2) More support for businesses, and more affordable bespoke help;

3) More time to prepare and better government communication about what preparation actually requires.
5/ This thread you've all seen from Daniel Lambert the wine merchant (primarily) deals with problems in this category.

There's no policy reason he can't export his product, but the procedures are a nightmare to navigate and he's badly under-supported.

https://t.co/LoHYR31LtA
5/ The Scottish fishers on the other hand, may be up against a policy wall that no amount of improved implementation or preparation can scale.

It is simply very difficult to consistently get fresh seafood across a goods border as quickly as required.
6/ Now to be sure, there are implementation challenges here as well.

This thread by a cold chain expert lays out some of the preparation shortfalls. But even if every truck had every form correct, and a good French agent, there'd be no guarantees.

https://t.co/peM3bjNd0G
7/ Overlaying both these challenge types is the question of ongoing competitiveness.

Navigating the new bureaucracy costs money, and while some of that is a one time learning cost, most isn't.

Having a supplier that must navigate bureaucracy also adds risk.
8/ Competitiveness loss is permanent and a consequence of a policy decision (hard Brexit), not an implementation failure.

UK Gov hopes to mitigate that competitiveness loss by tweaking its domestic regulatory settings to enable improved productivity.

Not clear how yet.
9/ In coming months, we're going to learn more about which business models rode the wave well, which were let down by implementation, which by policy, and which by both.

In the meantime, separating what hard Brexit is inherently from how it was delivered will remain difficult.
10/ P.S: The reason this question should not be academic to those of you who support eventual readmission of the UK into the EU (or at least SM/CU) is that if you get it wrong, and focus on issues resulting from implementation, your argument will disappear once they are resolved.

More from Brexit

Been waiting for 👇 🚨

Important story on what a “tariff-free” deal means in practice and why it’s not enough for two economies as closely integrated.

Tariffs are removed on goods that meet rules of origin. This is a complex and nuanced area of customs.

/1


Important to remember that trade deals (FTAs) weren't designed with such a high degree of economic integration in mind.

So some of the standard RoO provisions will seem incredibly restrictive under the UK-EU deal.

/2

Minimal operations or insufficient processing is a standard part of an FTA. Most, if not all FTAs, include a provision on minimal processing – processing not considered sufficient to confer originating status even if rules of origin have been met.

/3

It is standard procedure not to apply cumulation when goods have only been subject to minimal processing.

To be able to cumulate origin and consider the final product of UK origin, the processing carried out in the UK needs to exceed minimal operations.

/4

The level of integration between the UK and the EU means that this will have significant consequences for a number of industries.

For example, in supply chains where goods are brought into the UK from the EU and reassembled, sorted or repackaged and re-exported to ROI.

/5

You May Also Like