The future of logistics after Brexit

The future of the United Kingdom is still very unclear about its conditions for leaving the European Union due to the latest news. But one thing is certain, logistical exchanges between the country and the continent will not be the same.

 

Focus on the United Kingdom's import/export activities

What you need to know is that the United Kingdom is ranked 3rd in the world and 1st in Europe in e-commerce. Logistics is therefore very important for this country as well as its export methods since among the orders placed, a part comes from other countries in Europe or even the whole world.

Nevertheless, e-commerce is not the only activity requiring good domestic logistics, but also the international trade carried out by the United Kingdom. Indeed, many foodstuffs come from imports (less than 50% come from the country, the rest being imported).

Overall, according to Eurostat statistical studies, the import/export balance is unfavourable in the United Kingdom, with imports significantly higher than exports. That’s why it is important for the country to plan all the possibilities in the event of a brutal Brexit, without negotiation.

 

The "No deal": a threat to intra-Community trade

The United Kingdom has two options: acceptance of the exit agreement by the British Parliament or the "no deal".

In the case of validation of the exit agreement, a smooth exit from the United Kingdom from the EU may take place, i.e. there will be a transition period until 31 December 2020 (or even 31 December 2022 in the case of an exceptional postponement). During this period, all European standards will remain applicable and the country will therefore have additional time to find agreements with EU Member States for its future trade.

Nevertheless, in the case of a "no deal", the break between the United Kingdom will be brutal and will therefore make the outgoing country a third country to the EU. This will restore customs borders and make trade between the continent and the United Kingdom more difficult and costly.

Everyone will be affected, both British and EU residents. The outcome of Brexit is still only a mystery and we will have to follow this very closely.

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Posted from my blog with SteemPress : http://blog.economie-numerique.net/2019/07/18/the-future-of-logistics-after-brexit/

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