Brexit has the potential to directly or indirectly affect most businesses:
- Suppliers need to consider how the market for their own products may be affected, as well as anything which may affect their supply chain.
- Customers need to consider whether the price they are paying will remain competitive, and their own ability to use goods or services purchased under an agreement.
We as solicitors have summarised the main issues below.
Trade tariffs on goods
Various options are being discussed regarding UK's trading relationships with EU and non-EU countries. New or increased tariffs may be payable on both imports and exports may affect the costs of goods.
Freedom to provide services
Costs may be involved in complying with new requirements for the provision of services to EU member states or other countries.
Freedom of movement for workers
A UK businesses’ ability to perform contracts or the costs of performance may be affected by the reduction in the freedom of EU migrants to work in the UK and UK nationals' freedom to work in EU member states.
Changes in law
EU Regulations will no longer have direct effect and the UK will be free to repeal or amend laws which implement EU Directives. The government has announced that it will initially preserve the status quo but then consider what changes to make.
Licences and consents
UK businesses may no longer benefit from EU-wide approval schemes or reciprocal arrangements between the EU and the rest of the world.
Currency exchange rates
Fluctuations in the exchange rate between sterling and other currencies may have an impact on the value of sums paid and received under a contract.
Other financial factors
There may be a rise in the costs of borrowing and a dip in consumer spending.
Are you thinking about how Brexit could affect your business?