Brexit: an opportunity or a disaster? Currently on 31 October 2019, the UK will leave the EU.
Leaving the EU will affect some of your existing business contracts. It may affect future contracts you plan to sign. In preparation, you should think about the following points.
Consider establishing EU based subsidiaries, which could provide continued tariff free or reduced tariff access to the EU and flexibility, depending on:
- the source of manufactured products; and
- the eventual nature of the trade deals the UK may be able to negotiate with the EU and non-EU countries.
Your supply chain arrangements may need to be reviewed (see our note Brexit and your existing business contracts: what should you consider now?). You may consider routing products through countries with more favourable tariffs. In doing so, the savings will need to be weighed against the additional time it will take in getting the product to its destination.
Existing supply contracts may have strict deadlines with financial penalties for failure to meet them (see our note Brexit and the financial implications for your business contracts: what should you consider now?). New supply agreements will need to be flexible to absorb the impact of operational changes as a result of Brexit.
Do you need to revise your compliance frameworks?
To discuss these issues and for concise legal advice, please contact Stephen Sidkin.
Other notes in this series are:
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