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FTA Issues Warning About Cross-Border Trade

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The Freight Transport Association has raised concerns about post-Brexit cross-border trade.

Brexit will have far-reaching consequences for the whole of the UK and Europe, but the road haulage industry is on the sharp end of many of the likely changes.

This has led the Freight Transport Association (FTA) to raise concerns about the prospect of problems that will impact cross border trade and have negative impacts on the industry and the members it represents.

What are the FTA’s concerns?

The FTA is concerned about the preparedness of UK industry and Government to adapt to the inevitable changes that will occur as a result of the current Brexit process.

Depending on how we leave the EU, the UK’s exit will affect several key areas:

Furthermore, the uncertainty about future arrangements makes it very hard for any business to address these challenges.

Why are these challenges arising?

One of the “red lines” laid down by UK Prime Minister Theresa May in January 2017 was her desire to withdraw the UK from the EU Single Market and Customs Union when the UK leaves the European Union.

Hard-line Brexiteers in the Conservative Party are arguing that rather than pursuing a less disruptive and closer relationship with the EU, the UK should seek a comprehensive Free Trade Agreement between Britain and the EU as well as a new customs agreement.

The FTA has pointed out: “If neither of these new trading arrangements are in place when the UK leaves the EU then businesses will face trade barriers including tariffs (customs duties) and non-tariff barriers such as the need to make customs declarations; the need to demonstrate compliance with EU trade rules; and to provide details of how goods are being transported to border authorities.”

It says that its members have serious concerns that these non-tariff barriers will cause serious disruption to business as usual, including “giving rise to delays on busy ro-ro trade routes, particularly Dover-Calais, where delays of even a few more minutes per HGV would create major delays and threaten supply chains. It is vital to introduce efficient, fast, border controls that facilitate both import and export.”

Given the EU has repeatedly said that any Free Trade Agreement or new customs agreement between the UK and the EU will require the UK to ratify the withdrawal agreement first, at the current time it looks extremely likely we will all be facing these delays and disruption.

How do you plan for the unknown?

The continued lack of clarity about exit arrangements or post-Brexit settlements makes it very difficult for businesses of all kinds to plan – not only the haulage industry.

Same Day Couriers Direct understands that this creates a greater onus on our industry to respond. Our sector has a huge role to play in supporting the changes and contingency plans being put in place by our customers to mitigate the risks arising from Brexit uncertainty.

Of course, business is used to putting plans in place to address future change – but usually with years of advance notice. The lack of agreement in UK domestic politics means that major change could happen with very little notice.

Business knows that planning for unknown outcomes is possible – but it is all about risk mitigation, and it can be very expensive, unnecessary and ineffective.

The UK Government’s decision to postpone Brexit, and the EU’s subsequent agreement of a delay to the UK’s exit date, means that the uncertainty is set to continue.

What is the FTA doing to raise awareness about potential problems?

The FTA has launched two campaigns: first, a campaign to keep Britain trading and, second, a campaign to offer advice to companies such as Same Day Couriers Direct around No-Deal Brexit help.

The FTA has identified eight priorities as part of its “Keep Britain Trading” campaign:

Most urgently, the trade association is emphasising the need for a two-year transition period for businesses to plan and manage any change.

Has the FTA offered any solutions to road hauliers?

The FTA’s No-Deal Brexit help is focused on several aspects that are key to the haulage industry:

In the meantime, the haulage industry must respond to the changing plans and contingency arrangements of other affected businesses. Same Day Couriers Direct stands ready to help.

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