The U.K and the European Union (EU) are bracing for the likelihood of a “no-deal” Brexit.
Right now, there is consistency in legislation and regulation among the U.K., the EU and, in certain industries, the European Economic Area. As such, U.K. and EU businesses operate and trade without significant border checks.
It’s expected U.K. businesses will maintain regulatory alignment with the EU for the foreseeable future in the case of a “no-deal Brexit.” But that doesn’t mean that equivalence will still be recognized by the EU. It’s likely, in fact, that all U.K. businesses exporting products and services to the EU will need to begin proving they comply with EU standards.
On the corporate compliance front, this means U.K. companies doing business in EU countries would need to ready themselves for compliance changes that could impact business plans and supply chain management. These include obtaining the necessary approvals, registrations, and certifications now needed to do business in EU countries. And supply chains must be analyzed for potential delays because of border checks, compliance rules, new tariffs, and workforce shortages.
There are many other compliance implications to examine in the case of a “no-deal” Brexit. To learn more about them, consider reading a new article by Ian Tucker and Harriet Diplock posted to Brink, the digital news service of Marsh & McLennan Insights.