Impact of Brexit on your businessInternational Trade & Investment Related pages
The British exit from the EU happens the day after March 29, 2019, two years after PM Theresa May activated Article 50. Right now there is no deal regarding the conditions of this exit that has been ratified by both parties. This implies that March 30 2019 onwards, trade between the UK and the EU will take place according to WTO rules. From that day onwards, the UK will no longer be part of the EU Customs Union, nor of the EU Single Market. The slide below shows what the consequences are to trade between the UK and the Netherlands in the following scenarios: as it stands now with a no deal (WTO rules), solely a membership of the Customs Union (Turkey) and solely a membership of the EU Single Market (Norway).
Consequences for your business
Brexit has more repercussions for your organization than you might have thought at first. Direct consequences such as volatility in the exchange rate of the British pound and buying customs software or hiring a customs agent to meet the new requirements of exporting to the UK, are obvious. However, many indirect consequences also spring to mind, e.g. implementing alterations to your IT systems, shifting data streams away from the UK or diverging product standards. One might also consider country of origin stipulations, implying that a product you once imported and treated as an EU product, may no longer be treated as such since too much of its value is added in the UK (non-EU). Besides direct and indirect consequences for your business, you may also run into factors outside of your own organization: you might be well-prepared, your suppliers (and their suppliers) might not be. It is essential for your company to reach out to them to mitigate these effects as much as possible.
A quick and easy scan to assess the direct and indirect effects of Brexit is offered by the Brexit Impact Scan. It will give you an overview of the effects your company can expect based on your company profile. The Brexit Impact Scan is regularly updated to incorporate the latest developments and insights in the advice it gives.
The Irish employers’ organization IBEC has written a very useful report (page 14-25) that offers a practical toolkit per point of impact on how to mitigate the effects of Brexit.