The UK has been a leading shipping hub, and its EU membership has profoundly enhanced its role in trade. However, on 29nth March 2017, the UK submitted its willingness to withdraw from the UE operations (Brexit), meaning that it will now become the third party according to the EU rules. Shipping will be one of the greatly affected sectors since the British vessels will be considered non-EU and will be subjected to strict border control measures. The UK will have to negotiate its trade and shipping terms with its trading partners.
There are high uncertainties of various shipping services, including epacket tracking Shopify surrounding the context of the possible withdrawal agreement. Eurozone established free trade between members and British withdrawal from the union would impose a tax on all exports to EU countries. Additionally, any goods coming from the UK to any EU members were viewed as domestic shipping, with no need for paperwork or shipping guidelines. Withdrawal will create more complications, creating higher shipping fee and will result in slower delivery times. The free trading agreement will get cancelled, and consumers in the UK will have to pay a tariff to import goods from Eurozone, pushing them to look for alternative countries. With the increasing uncertainty due to Brexit, we are likely to note an increase in domestic activities in the UK, boosting the local shipping industry, which will benefit parcel and package services. However, the UK can still get a reliable customs representative to make accurate declarations without delays to help them ship goods to and from Europe. The affected parties must get prepared to take the necessary steps and comply with the relevant laws.
Potential Impacts of Brexit on UK Businesses
Different ventures will have varying effects when the UK finally leaves the EU due to potential economic impacts. Many small businesses in the UK have been utilizing high skills and low labour costs from skilled EU migrants. It could lead to higher operating costs if they are to rely on the home-grown workforce. The flow of goods and services to the EU will be disrupted, making it harder to fulfil orders; thus, businesses will have to streamline their local supply chain within the UK. Those with a good customer base already will also be affected in the long term since everyone will be looking into supplying the locally available demand. They will, therefore, need strategies to venture into emerging overseas markets such as India, Brazil, and China. UK based import and exports businesses will have an increase in operating costs as they will have to pay potential excise, customs duties and associated VAT.
The above are possibilities of how Brexit could affect the UK's international trade and their economy. Following acceptance, the transport of goods to the EU countries will get more complicated as well as moving goods through the states en route for other destinations. However, businesses should continually research the possible import and export policies based on Brexit and stay ahead of them to secure the future success of their businesses.