The Brexit White Paper was published last Thursday in advance of the next round of Brexit negotiations in between the UK and EU that start once again this week. Needless to say many things have taken place in the 10 or so days since the British cabinet agreed this collective method to Britain completely leaving the European Union at the end of 2020.
Enough of political chicanery and intrigue. What does the proposed plan (which is a basis for settlements and not a final settlement) mean for market merchants on an every day basis? In a perfect world, the terms of Brexit won’t have a damaging influence on your international trade.The new secretary of state for Brexit Dominic Raab made a declaration to parliament on Thursday as he provided the White Paper. He kept in mind that the strategy would take the UK from the Single Market and the Customs Union however the federal government desires to “keep frictionless trade through a new UK-EU complimentary trade location for products underpinned by a typical guideline book”. Particularly, the White Paper also proposes a “Facilitated Customs Arrangement (FCA)”, which the UK federal government is positioning as a “business-friendly model that removes the need for brand-new regular customs checks and controls between the UK and the EU, whilst making it possible for the UK to manage its own tariffs to increase trade with the remainder of the world”.
Preferably, the FCA mechanism will indicate that sending goods as a merchant to EU nations post-Brexit will remain as easy and unfettered as it is now. That certainly does seem to be the objective but the information of how it may work almost are still unclear. The hoped-for operation is laid out on page 8: “the phased intro of a brand-new Facilitated Customs Arrangement that would remove the need for custom-mades checks and controls in between the UK and the EU as if they were a combined customs territory” and in the next area it says “in mix without any tariffs on any products, these plans would avoid any new friction at the border.”
However commentary on the problems does seem to focus on larger organisations and consignments sized by the container load rather than private parcels in the mail or by means of courier.Further discuss page 36 of the Brexit White Paper looks at online retail, but regretfully when it comes to the free motion of anything, and it does particularly discuss “e-commerce”, the totally free circulation of data and details is more essential than that of your shipments. There stays uncertainty there that market sellers are seriously on the radar of the government.All in all, the Brexit White Paper does not respond to lots of specific merchant useful issues. So we wait to understand exactly what a final offer might appear like. If there is an offer at all. Over the weekend there has been chatter that Brexit might falter altogether.In a nod to that possibility, and unpredictability, Raab informed parliament that outcomes are under analysis and the cabinet has” agreed to step up preparing for a no-deal scenario. So that the UK is prepared for Brexit, no matter exactly what the outcome of these negotiations. “So, to a really fantastic extent, we are none the smarter yet.How might the terms of the Brexit White Paper impact ecommerce market sellers?