Wednesday 21 October 2020

Brexit: Finally a Clean Brexit?

 Well, it seems the negotiations are over and we are heading for a full and complete exit from the EU in the New Year. 

Unless the posturing is all smoke an mirrors and some orchestrated chicanery of a "miracle/hard negotiated/last minute" deal is "pulled out of the hat". 

If the latter is the case, I call bullshit on the "deal".

Right now, businesses across the country should be getting letters to state the position they will find themselves in 10 weeks from now. Those letters should state categorically the trading terms in place for European trade. Notwithstanding the "Kent Passport", we should know what VAT rates apply, what tariffs if any apply on importation of goods etc. 

Businesses cannot be expected to go to the wire and change their systems overnight. IT systems need to be carefully programmed so that no errors creep in. So the rules need to be available and programs changed to accept them and then those systems need to be tested to confirm compliance with the rules and also to confirm no bugs are introduced anywhere else in the programme by the new code.

10 weeks is not a long time. Any less and we'll seriously face issues and errors arising out of ill-preparedness. And if the situation in Kent is anything to go by, it looks like the government is going down the "fine companies if they get it wrong, even if the rules aren't available" route, which is completely unfair.

Basically I see an inevitable hiatus in the trade between the UK and the EU while companies (once they get detailed information on the rules applicable) change their IT systems to cope and deal with the changes.

That's just the issues within the UK, never mind any issues thrown up on the EU side like even more rules  (compatible with UK rules or not), required paperwork, prohibitions on certain items and the blockage of port by disgruntled French fishermen.

2021 will have an interesting start to the year i think.






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