How will Brexit affect truck exporters?
Brexit has been a headache for many exporters for the last few years now and unfortunately the water is still pretty murky. But, as a general rule, here’s how Brexit will affect you as a truck exporter.
The main effect will likely be changes to trade tariffs.
The UK looks set to no longer be entitled to trade under the terms of the customs union, single market or the deals countries agreed with the EU. This has resulted in the UK having to negotiate many individual deals with countries and economic regions independently. You can find out which non-EU member states this will affect by looking at the countries the EU currently has trade deals with. This can be easily done on the EU webpage about trade agreements.
If the UK wishes to benefit from more favourable tariffs, it will have to agree a new deal with all of the countries and regions on the EU list. Of course, the UK is currently in the process of doing this exact thing with the EU itself. You can find out which countries the UK has already negotiated trade agreements with, and see specific terms, on the government website.
What are tariffs?
If you predominantly export to EU member states, you may not have come across trade tariffs yet. As part of the EU customs union and single market they do not apply. But assuming the UK leaves the customs union and single market, they will be.
To quickly sum them up, they are the taxes that are paid on imports. They are designed to give locally produced products an advantage on the market, and also provide revenue to the respective government. As mentioned, they are paid on imports, meaning the they are paid for by the consumer and not you, the truck exporter. They therefore affect how well your exports will sell and at what price.
What happens if no deals are made?
If the UK does not agree on trade deals by the end of the year, the fallback will be to use World Trade Organization (WTO) terms. This applies to both the EU as well as other countries and economic regions.
The WTO is an independent forum for governments that allows them to agree upon the rules of international trade and settle trade disputes among the member states. The WTO terms and tariffs have been set up and agreed upon by those members to act as a stable baseline for trade. This ensures that no country is given preferential treatment over another – unless countries have a separate trade agreement. These terms also help to maintain the stability of trade by preventing sudden sweeping tariff changes.
Thankfully, the WTO endeavours to keep trade flowing as freely as possible. As part of this it brings all of the various trade tariffs imposed by countries around the world together in one place. You can find recent tariff figures based on the international 6-digit commodity codes using the WTO’s search tool on its website.
Unfortunately, Brexit is going to affect all of us in different ways depending on who we trade with. But, while many things are still left uncertain (and will probably remain so until the last minute), you are now armed with where to look for the information you need.
If you’re looking reliable, cost-effective truck exporter that will take care of all the paperwork for you, why not get in touch on 01782 614 456 to see how we can help?
Alternatively, if you’re an importer from overseas that’s looking for used UK trucks and machinery why not click through to our sales page to check out our current stock?