Freight News

EU approves Brexit talks guidelines – updated

[ March 23, 2018   //   Chris ]

The European Union approved its guidelines on trade and other issues for its negotiations with the UK about post-Brexit relations, widely regarded as a key step in the process, the BBC reports.

The guidelines give chief negotiator Michel Barnier the mandate to talk directly to the UK. The plan is to reach a broad political agreement by October after which the UK and European parliaments would consider it.

Prime Minister Theresa May said she had detected a new spirit of co-operation, adding that talks would also take place on finding a solution for Northern Ireland.

The BBC added that the remaining 27 leaders have also endorsed the agreement reached earlier in the week on a 21-month transition period between Brexit day in March 2019 and the end of 2020.

The Freight Transport Association said however that frictionless trade was not sufficiently at the centre of EU leaders’ position.

It said that the guidelines adopted by the European Council did open various avenues for potential customs and regulatory solutions, but anticipated that controls and checks on both sides of the border between the UK and EU will be unavoidable.

FTA deputy chief executive James Hookham, explained: “The guidelines touch upon potential solutions to reduce friction at the borders, but also make it clear that checks and controls will be unavoidable;  limiting non-tariff barriers is favoured by the proposals, but these also mention cumbersome rules of origins and fall short of giving guarantees to traders. To protect trading relationships and deeply connected supply chains, FTA is urging both negotiating teams to bear in mind the effect of potential delays on economies on the two sides, and to prioritise the scrapping of potential barriers as negotiations on the future relationship start.”

He warned: “No one wants to return to the situation of the Summer of 2015, when HGVs were queueing along the M20 in Kent for days on end, costing British business many thousands of pounds.  Yet this is the prospect we could be facing now.”

He concluded: “There is still much detail to be agreed in the two and a half years between now and the end of the transition period – a tiny period of time in business terms considering the scale of the challenge.”

General manager of FTA Ireland, Aidan Flynn, added: “Goods moves seamlessly across our borders today,” explains, “with only minimal customs checks and no need for lengthy inspections at the borders that can delay the process.  Even a small delay of two additional minutes per truck could result in tailbacks of 29 miles.”

Customs and AEO consultant and co-founder of The Customs People, David Miller, commented: “What remains to be seen is the extent of the impact that Brexit will have on trading for businesses involved in international supply chains in the less immediate future, and whether any plans are in place to make life easier for these once Brexit is finalised.”

He argued that any business involved in international trade – in particular with EU countries – should at least consider the impact it will have on their operations. The concept of Authorised Economic Operator (AEO) accreditation is at the heart of the proposals, so any businesses that import and export will be affected, he said.

With the Prime Minister seeking a ‘Customs Arrangement’ based on one of two models, wither a Customs Partnership – whereby EU duties are paid at the EU duty rate when goods are imported into the UK, but are bound for the EU – or a streamlined system with no entry or exit declarations for goods moving between the UK and EU and dependent on some kind of ‘trusted trader’ status, he advises businesses to begin preparing for both of these eventualities now.

Miller added: “One way to begin preparations is to consider AEO, which is an internationally-recognised quality mark indicating that your role in the international supply chain is secure, and that your customs controls and procedures are efficient and compliant.”

BIFA meanwhile said it would urge Parliament to have an early vote on the Committee’s recommendations.

Tags: Brexit, The Customs People