The UK government is still working on the best form of cooperation with the EU after Brexit. A lot of potential deals were discussed ahead of the release of Britain’s new papers, which will further detail the country’s future relationship with the EU.
While Britain is set to leave the EU in March 2019, the country is looking for ways to remain in the Customs Union during the transition period. Sources inside the British government are even saying that the country will try to remain in the Customs Union permanently.
A Welcome Policy UK businesses are responding positively to the proposal to remain in the Customs Union. The policy means UK businesses can transport goods across borders without going through excessive border checks and following complicated control procedures. The policy will also keep the transfer of goods cost-efficient since remaining in the Customs Union would mean UK businesses can still enjoy the low tariffs their European counterparts enjoy.
Lobby groups representing UK businesses are already saying yes to the proposed policy. It is a policy that will help British companies remain competitive post-Brexit, and it is a welcome addition to the proposed economic package. Being able to remain in the Customs Union permanently will be a huge plus since it will eliminate the uncertainties currently looming over UK businesses.
Resistance is to be Expected
The proposed policy may be good for UK businesses, but members of the EU are more likely to show resistance. The EU has long – and repeatedly – warned the UK against taking advantage of EU-specific privileges without the extra obligations. The practice commonly referred to as cherry-picking the advantages of EU membership, is something that EU members are completely against.
Brexit Secretary, David Davis, said some kind of transition arrangement was essential in response to the possible resistance from members of the EU. Davis is hoping an agreement can be made so that Britain can carefully negotiate a better trade deal – or trade deals – without disrupting its economy and local businesses.
Fees and Market Response
One of the solutions Davis brought up in an interview with the BBC is for Britain to pay a fee in order to remain in the Customs Union. Failure to reach an agreement would be a costly mistake for Britain and it is clear the government understands this challenge perfectly.
Businesses, on the other hand, are responding by strengthening their core operations. Companies are recruiting accountants and professionals in various fields as an attempt to prepare for the upcoming changes. It is also worth noting that more UK-based companies are recruiting professionals from the US, including graduates from top names such as Maryville University. Masters of accounting, as well as MBA graduates, are in high demand, prompting more people to complete an online accounting masters degree to take advantage of this market shift.
Whether the UK government can reach an agreement regarding remaining in the EU Customs Union remains to be seen. A more complete policy report will be released in a few days.
