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Will Brexit have an effect on importing goods?

29 September 2017, 16:31 CET

With Brexit negotiations underway, and the stalling process meaning trade negotiations are consistently being pushed back, many businesses and individuals are questioning whether or not Brexit is going to have a major impact on importing goods.

Whether you're looking to import a car from Japan, or continually import from China, there are a huge number of considerations as to what impact Brexit will have on the way that you will be able to do this in the future. In fact, Brexit has already had somewhat of an impact. Here, we're taking a closer looking at the relationship between trade and the impending divorce between Britain and the EU.

What Were The Rules Of Importing While The UK Was In The EU?

Within the EU, there were a number of different benefits when it comes to trading. Firstly, there is the free movement of goods between the UK and EU member states. With this in mind, this means that there were limited, or no, import duties, taxes and or customs clearance that any goods had to go through in order to be delivered to the recipient. This was extremely cost-effective for EU businesses and individuals importing and exporting goods in and out of the EU.

What Changes Will There Be?

There are a number of different options that could be put in place between the UK and the EU. The main option that the UK is likely to want to consider is heading into a bilateral agreement, such as becoming an EEA or EFTA country. This is what some non-EU but European countries such as Switzerland and Norway have entered into – allowing import taxes to be eased and the importation and exportation of goods being less complicated.

However, if things go sour and the EU demands the free movement of people deal along with the free movement of trade within the negotiations, which could put the UK off of agreeing, then imports and exports may suddenly become a lot pricier.

What About Imports From Non-EU Countries?

If things go sour with the EU trade negotiations, then this is likely to have an impact on non-EU countries. Some may consider putting up the price of their customs charges, taxes and other fees, to some degree, if the EU puts up their prices considerably. Other countries however, may make separate agreements with the United Kingdom, which could benefit both the UK and the import/export country – with countries like the United States and China looking to be the key partners in the near future.

Currently, the impact that Brexit will have on UK trade is unclear, although higher taxes and fees is somewhat likely within the EU. Nevertheless, we could see an increase in goods being imported from countries such as Japan, China, India and the United States (who has already agreed to back the UK when it comes to trade), reducing the UK's reliance on certain products from the EU. If more countries result in leaving the EU as a knock-on effect from Brexit, then we could see a number of individual deals being collated in the near future to support the UK's trade.

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