Slow boat to Brexit oblivion leaving soon
Business is brisk at Nim’s Fruit Crisps. Pineapples are imported from Costa Rica, kiwis from Italy and oranges and lemons from Spain. They’re then turned into healthy snacks for export to South Africa, Hong Kong and elsewhere.
You wouldn’t know that the company in southeast England is already about to head into the post-Brexit world without knowing what it will look like.
Nim’s will ship goods in coming weeks that are due to arrive at their destination after March 29, the date the UK plans to leave the European Union. The country still can’t agree on a deal to keep borders open and trade flowing. “We’re just going to wing it really,” founder Nimisha Raja said. “There’s not much more we can do.”
The problem for British exporters is that the UK is yet to roll over the majority of the beneficial trade terms around the globe it gets through EU membership. That means goods being readied for dispatch that take as long as six weeks to reach destinations in Asia could end up in quarantine or face disputes over who pays any new customs duties. “There will be a frantic look at contracts,” said Alex Veitch, a head of policy at the Freight Transport Association. “Changes in duties could increase the cost of a product massively.”
Some companies are trying to speed up delivery times. Joe & Seph’s, a gourmet popcorn producer in London, has started air freighting its goods to markets such as Hong Kong and Singapore instead of sending them by sea, even though it costs more.
The UK’s Department for International Trade says avoiding disruption to trading relationships is a priority and that it continues to engage with all its trading partners. Britain has so far signed continuity trade agreements with Chile, the Faroe Islands and eastern and southern Africa, and has “initiated” a free-trade deal with Switzerland.