This week, the European Union (E.U.) and the U.K. government made another small step toward tackling the implications of Brexit for companies operating throughout the supply chain by agreeing on a specific amount of time to have a “transitional period” so all parties can get used to the new rules.
The previously proposed transitional period has been determined to run from March 2019 to December 2020, giving businesses 20 months to adapt to the forthcoming effects of nation’s secession on trade relations.
Freight Transport Association (FTA), an interest group for logistics companies in the U.K., weighed in on the news, with deputy chief executive James Hookham calling the transitional period a “welcome breathing space in which to formulate plans and learn new processes.”
However, the picture of what customs and trade procedures will look like is still unclear. The details surrounding cargo inspections of goods, customs clearance and open-skies agreements between carriers based in the U.K. and those in the E.U. countries are still up in the air.
While this grace period is welcome news for industry members, Hookham stated there is a real possibility of a “‘no deal’ outcome at the end of negotiations,” and that businesses should be wary of complacency.1 - Reader Likes This Post