Long queues, piles of paperwork and no more pork pies: the consequences of a no-deal Brexit will be immediate on the movement of goods and people between the EU and Britain.
The European Commission on Wednesday warned that if Britain should crash out of the EU as early as April 12, that businesses -- as well as holidaymakers -- should prepare for major hassle at customs.
"I want to make it clear here that if the United Kingdom were to leave the EU without an agreement, it would become a third country overnight," Economics Affairs Commissioner Pierre Moscovici told reporters on Wednesday.
"This would be an instant, radical and very substantial legal change for the United Kingdom, our Member States and our companies," he added.
- Goods -
Lorry-loads of merchandise flow freely between Britain and continental Europe but without a Brexit deal, these will become subject to cumbersome customs controls at the EU's borders.
The task will be daunting: seven of the UK's top 10 economic partners in the world belong to the EU and more than four million vehicles travel each year by ferry or train between Dover and Calais alone, or more than 11,000 vehicles a day.
While not all British goods will of course be checked, "queues at the exit of the Eurotunnel (linking France and Britain) and in ports are to be expected," warned Moscovici.
"I prefer strict controls and a few lines of trucks to a health crisis or illegal trafficking," he added.
- Red tape -
European companies trading with Britain will be required to complete reams of customs formalities in the case of no deal.
According to Moscovici, some Member States estimate that the number of export and import declarations will increase between 40 and 50 percent.
"The level of readiness is fundamental and unfortunately this is still a cause of concern," the Frenchman stressed.
"The fluidity of trade flows will depend largely on whether they have prepared the right documentation," he added.
- People -
Travellers from Britain will also be subject to customs screening, with bans on transporting certain products to the continent, particularly animal-based ones, such as cheese or meat, which are a risk for health reasons.
This would mean that holidaymakers would no longer be able to take their favourite British foods with them to the continent, though a senior European official indicated that imports by retailers would be safe.
"But it only concerns travellers," the official said.
"We are in the process of allowing the United Kingdom to be included in countries that can export these products as part of a trade relationship: imports of British pork pies from 'Marks & Spencer' will be possible," she added, referring to the iconic British supermarket.
- Customs duties -
Overnight, Britain will be subject to tariffs set by WTO rules, like any country with which the EU does not have a specific trade agreement, often known as third countries.
This will have immediate cash-flow consequences for European companies importing British products, which will have to pay these duties.
These customs duties average 1.5 percent, which is still quite low. But they can be higher in some sectors such as the crucial automotive sector where they are 10 percent.
- Ireland -
Britain's only land border with the EU is the jagged frontier line that divides bloc-member Ireland from British-ruled Northern Ireland and it is Brexit's most sensitive issue.
Even without a deal, London and Brussels have committed to avoid the return of a physical border to the Irish island, all while finding a way to carry out controls.
These will therefore have to be put in place "in the least disruptive way and as far as possible, away from the border", a cautious Moscovici said Thursday, refusing to discuss any details.
Long queues, piles of paperwork and no more pork pies: the consequences of a no-deal Brexit will be immediate on the movement of goods and people between the EU and Britain.
The European Commission on Wednesday warned that if Britain should crash out of the EU as early as April 12, that businesses — as well as holidaymakers — should prepare for major hassle at customs.
“I want to make it clear here that if the United Kingdom were to leave the EU without an agreement, it would become a third country overnight,” Economics Affairs Commissioner Pierre Moscovici told reporters on Wednesday.
“This would be an instant, radical and very substantial legal change for the United Kingdom, our Member States and our companies,” he added.
– Goods –
Lorry-loads of merchandise flow freely between Britain and continental Europe but without a Brexit deal, these will become subject to cumbersome customs controls at the EU’s borders.
The task will be daunting: seven of the UK’s top 10 economic partners in the world belong to the EU and more than four million vehicles travel each year by ferry or train between Dover and Calais alone, or more than 11,000 vehicles a day.
While not all British goods will of course be checked, “queues at the exit of the Eurotunnel (linking France and Britain) and in ports are to be expected,” warned Moscovici.
“I prefer strict controls and a few lines of trucks to a health crisis or illegal trafficking,” he added.
– Red tape –
European companies trading with Britain will be required to complete reams of customs formalities in the case of no deal.
According to Moscovici, some Member States estimate that the number of export and import declarations will increase between 40 and 50 percent.
“The level of readiness is fundamental and unfortunately this is still a cause of concern,” the Frenchman stressed.
“The fluidity of trade flows will depend largely on whether they have prepared the right documentation,” he added.
– People –
Travellers from Britain will also be subject to customs screening, with bans on transporting certain products to the continent, particularly animal-based ones, such as cheese or meat, which are a risk for health reasons.
This would mean that holidaymakers would no longer be able to take their favourite British foods with them to the continent, though a senior European official indicated that imports by retailers would be safe.
“But it only concerns travellers,” the official said.
“We are in the process of allowing the United Kingdom to be included in countries that can export these products as part of a trade relationship: imports of British pork pies from ‘Marks & Spencer’ will be possible,” she added, referring to the iconic British supermarket.
– Customs duties –
Overnight, Britain will be subject to tariffs set by WTO rules, like any country with which the EU does not have a specific trade agreement, often known as third countries.
This will have immediate cash-flow consequences for European companies importing British products, which will have to pay these duties.
These customs duties average 1.5 percent, which is still quite low. But they can be higher in some sectors such as the crucial automotive sector where they are 10 percent.
– Ireland –
Britain’s only land border with the EU is the jagged frontier line that divides bloc-member Ireland from British-ruled Northern Ireland and it is Brexit’s most sensitive issue.
Even without a deal, London and Brussels have committed to avoid the return of a physical border to the Irish island, all while finding a way to carry out controls.
These will therefore have to be put in place “in the least disruptive way and as far as possible, away from the border”, a cautious Moscovici said Thursday, refusing to discuss any details.
