The UK is leaving the EU, and what this means for businesses in the UK is still unclear. There are a number of issues that need to be resolved before this can happen, including the agreement on trade and immigration.
Here, we look at the implications to the trade of the UK leaving the EU. There are many potential implications of Brexit for UK businesses, including:
- A reduction in the amount of trade that takes place between the UK and the EU
- A reduction in the amount of trade that takes place between the UK and other countries outside the EU
- Changes to the trading rules between the UK and the EU.
Some of the other implications are outlined below.
Supply chain implications
There will be some significant changes in the supply chain after Brexit. This will affect three main groups: importers, exporters, and suppliers. Europe is incredibly critical to British supply chains, so the
The UK will lose some of its highly skilled workers that are currently in the EU. This means there will be a need for new talent to fill the gap. Companies will need to train and develop these new workers. Some of these new workers will come from overseas. This will warrant a whole set of rules and agreements for the UK workforce post-Brexit.
Import and export implications
Before Brexit, there was free trade between the UK and the EU. This means that there is free access to markets and free movement of people. There will be a change in the trading rules between the UK and the EU. This will affect:
- Trade of goods between the UK and the EU.
- Taxing of goods from outside the country.
- Customs and border regulations.
The impact of Brexit on regulation has the potential to be monumental. In several sectors, the United Kingdom adheres mainly to European-wide norms, and it is probable that UK regulations will continue to adhere to such standards in the foreseeable future.
Opportunities for UK companies post-Brexit
Although Brexit is often regarded as a danger or a bad event, it may also open the door to new opportunities for those who are willing to take advantage of these opportunities. Some firms may be able to gain from currency volatility, and new trading relationships may be sought as a result of the volatility.
As a result of the United Kingdom’s connection with the European Union, our domestic law in a wide range of industries may change in form or content, providing companies with a chance to influence the government in the development of future regulations.
The UK will have to restructure its regulatory framework for government and parliament as it leaves the EU. Brexit changes the way the law is approached.
The changes to the UK business regulation will give companies difficulties as they try to understand how they influence their operations, contracts, and personnel. It is, therefore, critical that policymakers have access to relevant expertise to properly manage risks and identify possible opportunities.