Policy & Compliance
In the original trade treaty between the European Union (EU) and Great Britain (GB), it was agreed to ‘review’ its operation every fi ve years. This means that the fi rst review is due in 2026, but much of the process will be undertaken in 2025. Thereafter, the following review is due in 2031 and so forth Why are we re-examining the EU-GB relationship?
What have been the main impacts of GB leaving the EU ? As BIFA advised at the time, Brexit has led to the re- introduction of Customs and other regulatory controls and thus increased costs. As predicted, goods moved by road, and in particular the perishables sector, have been amongst those most adversely affected. There is significant disagreement about the statistics, but official figures indicate that in 2023: • Total trade with the EU was £800 billion, • Between 2021 and 2023 exports declined by 27%, • Imports in the same period fell by 32%. For the freight forwarding sector there have been increased risks due to the growth of DDP traffic, dealing with non-established taxable parties. Set against this are commercial opportunities due to the increased number of Customs declarations required and also the introduction of new regimes such as S&S GB, which requires a safety and security declaration to be submitted for inbound movements to the UK from the EU. In many cases, it is only the freight forwarder/Customs agent who has access to the relevant data to undertake these activities. What are the areas for co-operation? The new Labour government has created a better atmosphere to conduct negotiations between the two parties. In certain ways both sides are still implementing the last aspects of Brexit and the full implications of these policies will take time to evaluate. In the UK, the
introduction of S&S GB on 31 January 2025 was a significant change, with its impact on ro-ro being greater than for other modes, and it will take time for it to be fully implemented. Many believe that the main areas for negotiation may not focus on trade issues, where there is scope for disagreement. There is a belief that areas where progress can be made include: • Better legal co-operation to counter people smuggling gangs, • Energy security, It should be recalled that the world has changed significantly in the last five years. Where might there be some trade-related easements? In all probability, whilst there may be some simplifying of border procedures, the main processes will remain, such as the requirement to submit a Customs declaration. There may be scope for flex around the edges, a • Climate co-operation, • Defence co-operation, • Alignment of migration policies.
“ Many believe that the main areas for negotiation trade issues, where there is still scope for dis - agreement. may not focus on
12 | April 2025
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