Photographer: Chris Ratcliffe / Bloomberg
Photographer: Chris Ratcliffe / Bloomberg
British companies have welcomed a Brexit trade agreement with the European Union, but are demanding a grace period that will allow them to adapt to the new measures and regulations.
The Prime Minister of the United Kingdom, Boris Johnson, and the President of the European Commission, Ursula von der Leyen, hailed the historic intermediation of an agreement on Christmas Eve, more than four years after Britain first voted for leave the union. However, the deal has landed just days before the end of the Brexit transition period on 31 December, giving companies little time to prepare for a new relationship with the UK’s largest trading partner. nation.
While the agreement has removed the prospect of costly tariffs and quotas on goods, there are still many changes to come, from new licensing rules to paperwork requirements. The Covid-19 pandemic also makes preparation even more difficult.
“Arriving so late in the day, it is vital that both parties take instant action to keep trade moving and services flowing as businesses adjust,” said Tony Danker, director general of the British Confederation of Industry, the largest business lobby in the UK. . “We need urgent confirmation of grace periods to smooth the edge of the cliff, from the data to the rules of origin, and we need to make sure we keep the goods moving across borders.” .
Trucks line up during an operation to alleviate capacity problems in the port of Dover, UK, in September.
Photographer: Leon Neal / Getty Images
“Adjustment period”
Other business groups from sectors such as car manufacturing to small businesses also took part.
“A gradual introductory period is critical to helping companies on both sides adapt and efforts must now be maintained to ensure a smooth implementation,” said Mike Hawes, executive director of the Society for Motor Manufacturers. and Traders.
Stephen Phipson, CEO of Make Manufacturing Pressure Group UK, called for an “adjustment period,” alleging concerns about the impact of the coronavirus.
“Even without the pandemic it would be more credible to believe that companies that export goods for hundreds of millions of pounds each year could adapt to a fundamentally different trading model in just one business week,” he said.
All sizes
The Institute of Directors said government support would help companies adapt.
“Whenever possible, changes should be introduced gradually,” CEO Jonathan Geldart said. “Financial support for SMEs, such as professional advice vouchers or tax rebates to help them adjust, would help companies move forward for the new year.”
Mike Cherry, president of the Federation of Small Businesses, echoed this request for help.
They need “specific and tangible support, including £ 3,000 ($ 4,000) transition vouchers that small businesses can spend on the training and advice they need to navigate a new business relationship with our largest export market.” , he said.
Adam Marshall, director general of the British Chambers of Commerce, said it should not be difficult to grant an adjustment period “as it is normal for free trade agreements to come with step-by-step measures, and that this should not of being different ”.