Friday 8 January 2021

Curtains

From Lands End in the south to Wick in the north, a curtain of red tape has descended around the country.

Both the Single Market and Customs Union enabled EU Member States to trade with minimal paperwork with each other, making it possible to trade with customers/companies as easy if they were in Walsall or Warsaw.

Brexit stops that, it has taken the UK out of the very two systems that make frictionless trade possible. Though that isn't true, it is Britain that is surrounded by a curtain of red tape, Northern Ireland is in the EU MS and CU for many goods. It is now easier for a company in Belfast to trade with a customer in Warsaw than in Walsall.

That is a direct result of Brexit.

This is no mere bump in the road, it is a reality from this week and going forward until a different arrangement can be agreed, but that would take time.

In fact, this morning, a relaxation of the rules has been agreed as there are shortages of food in NI, as a result of the new paperwork and regualtions in supplying businesses there. This comes with agreeing a deal at the last minute, no time to figure out it will be implemented, just just is. Many trucks are not in queues at the port because they are at factories and warehouses waiting for their paperworkd to be completed. The queues are not at ports, just elsewere.

The same is true at Dover, where although freight levels are low, a high percentage have incorrect paperwork or none at all allowing them to board a ferry. he industry hope that "wrinkles" would be ironed out once a deal was done has been replaced with the realisation that this is how it is going to be, for quite some time, the deal is the deal. Brexit is Brexit.

Who knew?

Meanwhile British busnesses that operate has hubs for distribution to the rest of Britain and EU now learn that for their goods to be tariff free, there has to be some process carried out on them, otherwise the correct tariff will be levied.

This was always going to happen, yet for many this was going to happen under EU rules of origin, Brexiteers and business was warned, and yet here we are.

Fish companies are finding that stock sent out for delivery to the EU on Monday for sale on Wednesday, but Thursday had not reached a UK port due to the incorrect paperwork, so loads will spoil have have to be dumped. Many have given up on supplying the EU, and the same the other way round with UK VAT rules making it more complicated.

But I susppose that will make JRM happy as it will further reduce freight flows and so no queues at the ports.

But so much for the free market.

And remember, this deal ratified by Parliament in under 5 hours on December 30th has shattered the UK internal market, and lays the clear foundation to Irish unity, and Scotland quite rightly asks, if NI can have separate arrangements, then why can't we?

All this Brexit, all this taking back control.

And destroying business at the same time.

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