UK still grappling with Brexit incoherence

UK still grappling with Brexit incoherence

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Leave or stay – let’s face it, it’s irrelevant now – it’s hard to deny that some elements of the UK’s departure from the EU didn’t go well when approached and politics or business reality.

So it still exists.the government is Consider the fourth delay The implementation of comprehensive import inspections on products from the EU – due to take effect on July 1 – is the most problematic of which is food inspections.

On the one hand, it would be a pragmatic move when the war in Ukraine has stretched supply chains to the brink of collapse. Politically (and wisely) Downing Street is determined to avoid a shortage of shelves or aggravating a cost-of-living crisis.

But make no mistake: as they say, the problem is a feature not a bug.

Two years ago, the government insists The overhaul is essential to keep “our borders secure” and “ensure we treat all our partners equally in trade”.

Now, not so much. Concerns about change are real: the introduction of less invasive controls in the past has been accompanied by a six- to eight-week hiatus, alleviated only by downplaying enforcement. There could also be bandwidth issues: “The government isn’t ready for these things,” according to one person involved.

The backdrop is a renewed focus on trade.Prime Minister Rishi Sunak admit this week The UK’s weak trading performance is “likely” related to Brexit. The trade intensity of economic output in other countries has rebounded post-pandemic, but not in the UK.

What really happened wasn’t exactly simple. Exports have been weak. But Thomas Sampson of the London School of Economics points out that from January 2021, goods entering the EU are subject to comprehensive inspections and have not fallen behind exports to the rest of the world. Imports from the EU suffer more as the formalities are less cumbersome.

Frankly, one possible explanation is that EU businesses have other options and don’t like to bear the cost and hassle of UK cheques. UK exporters currently do not have a level playing field in the trade bureaucracy, nor do they have a large, frictionless market to sell to.

However, there is a particular problem with food. Shane Brennan of the Cold Chain Federation said so-called LCL shipments, which bundle together small batches of goods from different suppliers, had collapsed in the headline data. He argues that you cannot conduct third-party trade inspections of the integrated food supply chain, including physical inspections and veterinary certificates, without disruption. It just doesn’t work.

As ever, when trying to address the Brexit circle, there are no obvious good answers. Some multinational corporations and port operators, who have already invested and hired staff, would rather suffer and move on.

Others, including the food and agriculture sector, appear to want inspections, but want to minimise disruption by exempting low-risk categories from inspections and reducing frequency elsewhere. The question then is whether this amounts to a phased introduction, or a redesign of the UK system.

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Others have called for a longer delay.Rationalisation after the fact – such as Brexit negotiators Lord Frost’s advice Restricting freedom of border checks is part of the plan – and should be viewed with suspicion.

Of course, the EU Food Standards System is a well-known and trusted quantity. (The fact that they operate such close-knit ships is part of the problem when it comes to the movement of goods from the UK to Northern Ireland). But effectively outsourcing food safety to Europe would be a bizarre outcome, and one that will only fly politically until any sign of scandal emerges.

Likewise, the idea that border digitization will ease all this in 2025 is premature at best. Ditching paper forms and consolidating processes into a single touchpoint would be a win.

But you can’t magically eliminate the need for physical inspection of meat and dairy, say. That said, unless you have an agreement with the EU on food and hygiene standards, it’s a no-no for Brexit hardliners. Or, you fundamentally overhaul the way we enforce food safety, moving to a “Trusted Trader” program where domestic officials check and monitor standards at the source.

All suggest a result based on a famous British pastime and product: kicking the can or fudge.

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