Hard Brexit warning as EU likely to resist a free trade agreement
UNCERTAINTY surrounds the prospect of the UK striking a free trade agreement with the European Union by the end of 2020, as the block could suffer a reduction in revenue on imported goods, if UK is used as a 'back door
UNCERTAINTY surrounds the prospect of the UK striking a free trade agreement with the European Union by the end of 2020, as the block could suffer a reduction in revenue on imported goods, if UK is used as a 'back door.'
As New York's FreightWaves previously reported, that will be no easy task and a no-deal Brexit, which would be hugely disruptive to supply chains, is a strong possibility.
'Boris Johnson's emphatic win will certainly allow him to get his Withdrawal Bill through Parliament and enable the UK to leave the EU on January 31 as planned,' freight and international logistics experts Straightforward Consultancy's managing director Andy Cliff was quoted as saying.
'The concerns which many have, as I have said previously, is that the most important stage, trade negotiations with the EU, kick in straight away, and if they don't go well in that 11-month time frame, we could indeed face a so-called hard Brexit [no-deal Brexit], which Boris will have the authority to carry out by way of his commanding majority in Parliament.
'Many, including myself, feel that a free trade deal is highly unlikely, as the UK could then be used as a 'back door' into the EU, allowing the UK to set more attractive import tariffs which they're unable to do now whilst in the EU Customs Union for imported goods, thus starving the EU of revenue and also incentivising companies to locate in the UK instead of the EU.
'When you consider this, a free trade deal has to be very unlikely, as the EU will do whatever is needed to protect the integrity of the single market, so a hard Brexit may well happen after all. So be prepared!'