Post-Brexit price hike fears avertedPrint publication
Did you know that goods haven’t become more expensive?
What does Brexit say
There are no taxes on goods (tariffs) or limits on the amount that can be traded (quotas) between the UK and the EU.
What do we say
The fear that some goods could become more expensive in the context of UK and EU trade has been avoided.
However, to benefit from this tariff-free treatment the exported goods must originate in the UK or an EU Member State. Meeting the new “rules of origin” can be complex and has contributed to supply chain disruption. In new trade contracts between the UK and an EU Member State ensure you are familiar with whether the goods meet the UK-EU preferential rules of origin as set out in the UK-EU Trade and Cooperation Agreement. Even if you do benefit from the tariff free rules, you may wish to consider including express provisions in your contracts setting out how any new compliance obligations will be fulfilled by the contracting parties. In longer term contracts ensure that you have robust provisions around pricing reviews.