Two years ago In Britain the BREXIT party pushed Britain’s exit from the European Union down the throats of the population, but there was something unique about this situation. Usually the protagonist is well-versed in subject matter history and research, leaving them with the full knowledge of their objectives and what they will win. In the instance of BREXIT both the protagonist and the British population were in complete ignorance of what was to befall them.
The ignorance of the British population was to be expected because few had any idea of the benefits that membership to the European Union granted them. If we consider just one of the benefits relating to the free movement of goods within the EU we will see that the British economy will suffer a major setback for decades to come if they continue on this path.
A brief background is necessary and we will consider first a product manufactured within Britain. The designer completes tests and creates a document called a technical file; once the technical file is complete the product may be marked with the CE marking and shipped anywhere within the EU. Products created and manufactured within the US and other English speaking countries generally use Great Britain as that point of entry to the EU. The choice is obvious, English being the common written and spoken language makes it easy for exporters to the EU to use Great Britain as their point of entry.
Once Great Britain leaves the European Union it can no longer act as a point of entry for overseas manufacturers like the US. Worse still, goods created and manufactured within Great Britain can no longer be subject to the free passage which is the privilege of all EU members. This means Great Britain will not only lose the income currently received from countries using it as a port of entry to the EU, but also must seek new authorised representation from one of the remaining European countries EU member states. This sounds simple but it is not. British companies will be forced to develop relationships either with southern Ireland or France. Exporting through southern Ireland will mean double handling and expensive transportation costs, whereas the difficulties in creating a technical relationship with France and French authorized representatives is best left to the imagination. This will place Britain at the back of the queue along with the other non-EU countries.
Two years after the UK referendum to leave the European Union, nothing much seems to have changed and precious little has been resolved amid the myriad of questions that arise in the regulatory arena. The only thing we know for certain at this moment is that the UK Economy will be hit the hardest as multi-national companies, including Airbus, are threatening to leave operations in the UK According to our sources, the UK government is totally paralyzed over the Brexit question.
Here are a few of the questions for which we need to get answers for our readers:
1. For all the regulations and Directives for which registration is required, will all the companies registered in the UK have time to transition to other primary registration countries without penalty?
2. Will the transition between Notified Body approvals be seamless? Will we now have to translate all our documentation into another language to avoid confusion?
3. How will all these changes affect our supply chain management?
4. How will all these changes increase costs and regulatory hassles for my company?
5. What will be the impact on shipping/transport time tables and costs for moving products across the UK and Europe?
6. Fundamentally, will the UK be able to transition into this new single country role in time?
We will all have to wait until October for the next negotiating session between Great Britain and the EU but it should be known that the European Union countries are getting tired of the lack of progress.