If you’re looking to trade confidently with the EU while reducing risk and administrative burden, the right financial and operational planning is essential.
Trading across borders brings added complexity, from managing VAT obligations and customs requirements to managing currency exposure and supply chain efficiency. Businesses need clear visibility over their costs, processes and compliance position to avoid delays, penalties, or unnecessary expense.
Since the divorce from the EU, the UK has been struggling economically, with estimates saying that the split has reduced investment in the UK by 12 to 13 per cent.
The impacts on trade from Brexit
During campaigns for the referendum, millions of Brits heard promises around trade. However, since Brexit, trade between the UK and the EU has become much more difficult.
Despite the UK-EU Trade and Cooperation Agreement (TCA) that was signed post Brexit, promising non-tariff barriers, extensive customs checks and rules of origin paperwork have severely complicated supply chains and created delays for UK businesses trading with the EU.
The referendum created a consistent decline in the value of the pound by around 10 per cent. The weaker pound led to a deterioration of the UK’s terms of trade as imports became more and more expensive.
The higher import prices then led to an increase in consumer prices, with the fall of the pound costing the average UK household an estimated extra £870 in a year.
As the cost of trade rose, the amount of trade dropped. The TCA deal is estimated to have reduced UK goods exports to the EU by 10 to 15 per cent.
This led to one in seven firms that were trading with the EU pre-Brexit to cease trade because of the implications of TCA.
How to mitigate against Brexit-related issues
It is no secret that ten years on from Brexit, British businesses are struggling to trade with the EU. However, there are some steps that can be taken to mitigate these issues.
These include:
- Optimisation of customs procedures – Businesses should reduce their administrative bottlenecks by using automated customs platforms and real-time tracking. In order to comply with the rules of origin, businesses should review their supply chain to ensure their goods qualify for tariff-free trade under TCA.
- Managing regulations – For more heavily regulated sectors, secure mutual recognition of conformity assessments avoids dual testing or compliance requirements in the UK and EU.
- Logistics and transport – If your business is eligible, you should apply for Authorised Economic Status (AEO), which can grant faster customs processing and priority treatment at borders.
- Localising supply chains – Reshore critical component sourcing to limit cross-border exposure and delays.
Reanda are here to help you manage your EU trade ten years on from Brexit.
From managing import/export documentation and handling customs procedures to advising on tax optimisation and supply chain strategy, we provide practical, hands-on support tailored to your business.
If you’re looking to trade confidently with the EU while reducing risk and administrative burden, get in touch today to see how Reanda can support your international growth.
For more information, get in touch with our talented team today.