Challenges of Brexit outlined for transport sector

‘Prepare for the worst and hope for the best’ was the strong advice given to members of the Chartered Institute of Logistics and Transport half-day event at the Ballymascanlon Hotel last week, which focused on the impact Brexit could have on the all-island supply chain.

The organisation, which promotes professionalism in logistics, transport and the supply chain, heard from the president of the Chartered Institute (CILT), Helen Noble and from Pamela Dennison, national officer with the organisation in Northern Ireland.

ISME CEO, Neil McDonnell, said the strong advice that was being given in business and industry is to hope for a Brexit that’s as close to the situation that we have now, but to prepare for the ‘worst’, a hard Brexit with a hard border where goods are subject to World Trade Organisation ( WTO) tariffs.

He stressed that while he was not suggesting this is the most likely or inevitable outcome of the talks between Britain and the EU, it would be prudent to prepare for a worst case scenario’.

Anne Lanigan, manager of Enterprise Ireland’s Brexit Unit, said the organisation has spent 2017 looking at the possible implications of Brexit for its clients while 2018 will be spent focusing on key actions including helping firms look at sourcing from countries other than Britain, customs and logistics and financial and currency management.

Those attending were told that while it is not clear at this stage what the ‘worst case scenario would look like’, the CILT was guiding its members that post March 2019, the trading relationship between Britain and the EU would be governed by WTO rules.

This also meant that customs and other administrative controls would then be re-introduced and tariffs would be levied in accordance with WTO rules.

The conference heard that tariffs vary by product group and classification and the rate fluctuates between 0% for pharmaceutical products up to 350% for tobacco products.

Tariffs on food and agricultural products vary from 30% on confectionary to 70% on beef.

Members were told that all trade between Britain and the EU, in the event of a hard Brexit, would require full customs clearance.