Is Your Business Ready for Trading Post Brexit?
Brexit has been overshadowed by the coronavirus pandemic this year, but as 2021 draws closer, it is vital for businesses to be prepared for the changes that will arrive at the end of the transition period on 31st December 2020, if they wish to continue trading with the EU.
It still remains unclear as to whether the UK will reach a trade deal with the EU before the year end and therefore, this will effectively mean that default World Trade Organisation (WTO) tariffs will apply to imports and exports with EU member states.
If you haven’t already done so, you should identify the risks and any potential impact of Brexit on your business and supply chain. The areas most likely to be impacted are:
- trade tariffs and border controls on imports and exports (which could apply to raw materials, components or finished products);
- employment and immigration;
- IP rights and protections;
- VAT and continued fluctuations in exchange rates;
- contractual arrangements with third parties (who will bear any additional obligations and costs which may arise as a result of Brexit?); and
- changes in law and regulations, including data protection and online services.
It’s not all bad news, as of course, there are likely to be business opportunities available which arise out of Brexit. This could include expanding your trading activities to other non-EU countries, collaborating with other businesses to pool resources and cut costs, upskilling existing workforces, and so on.
Rina Sond, Commercial and IP Partner said: “Businesses cannot ignore the impact that Brexit will have on trade, and so they should plan accordingly now to ensure that impact is minimised and be prepared to grab the opportunities available”.
Further information and guidance on what steps to take can be found on the Government website and in this urgent message from the Business Secretary.
Here to Help
Should you require any assistance with reviewing existing business dealings or putting new contracts into place with new business partners, then please do get in touch with our Commercial team.
Please note the contents of this blog are given for information only and must not be relied upon. Legal advice should always be sought in relation to specific circumstances.