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UK forwarders call for more details on Brexit plans

THE British International Freight Association (BIFA) says the British Prime Minister Theresa May's plans for a clean break from the European Union delivered some clarity, but remained short on the details to help its members in doing their business of managing much of the UK's visible international trade.

"We are leaving the EU, but we are not leaving Europe, and that is why we seek a new and equal partnership," Mrs May said, adding that the UK would push for "the freest possible trade" with the EU and other countries.

She said the UK would aim to negotiate tariff free trade with the EU, arrange new trade agreements with countries outside of the EU, create a customs agreement with the EU and maintain the common travel area between the UK and the Republic of Ireland.

However, the director general of BIFA, the representative body for UK freight forwarding companies, Robert Keen said in a statement: "Our members across the country over the last few months have been dealing with a lot of uncertainty. They would have welcomed clarity on the mechanics that will underpin Mrs May's desire for 'tariff-free and frictionless trade'.

"Today, Theresa May has promised to take Britain out of the EU single market and pledged to seek a 'bold and ambitious' trade agreement with the bloc. The prime minister said that she wanted 'an ambitious customs agreement with the EU' while rejecting the Customs Union because of the common external tariff that prevents Britain from negotiating separate trade deals with third countries.

"After today's speech, BIFA is hoping that the government has a fundamental understanding of all of the possible permutations and challenges in regards to our future trading relationships with Europe and the rest of the world, post membership of the EU.

"Freight forwarding executives are none the wiser on the actual mechanics of Britain's future trading relationships and how they might affect the freight forwarding sector. Will Customs reintroduce EU transaction border controls? Will the replacement for CHIEF go ahead and will the new system be able to handle the millions of extra transactions? How will controls on dual use items be managed?"

However, the UK's Freight Transport Association (FTA) welcomed Mrs May's vision for "tariff-free and frictionless trade" with the European Union (EU).

The association said Mrs May's statement allowed the association to identify where the new 'friction points' in international trade could occur and work with the government to negotiate the best possible outcome for UK businesses, the London's Air Cargo News reported.

"A truly global Britain, trading effectively with all nations, is something FTA welcomes, and the association urges the government to progress bold and ambitious free trade agreements with key trading partners around the world as quickly as possible to ensure seamless business relationships can continue," it said.

"The Prime Minister's commitment to maintain the common travel area in Ireland is welcomed by FTA as this is one of the key issues of concern to its members."

Meanwhile, parcel broker Fastlane International also welcomed the prime minister's plans, but the London-based shipping firm also warned that her declared aim of abandoning the EU Common External Tariff will cost UK exporters GBP44 billion (US$54.2 billion) and lead to excessive delays and red tape for shipments at EU borders.

Fastlane head of consumer research David Jinks said: "Moving outside the EU's Common External Tariff would mean the need to set our own tariff rates.

"That entails setting our own duties on 19,000 individual tariff codes across a huge variety of items - a move undoubtedly leading to increased border delays and red tape for British importers and exporters, and EU businesses looking to trade with the UK.

"It's a frightening scenario that could result in an increase in the cost of imports of around 20 per cent; GBP44 billion on current UK business exports to the EU of around GBP220 billion."