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BREXIT - AFTERMATH

Pioneered and adopted by the UK in 1993 by Margaret Thatcher’s government, the Single European Market was considered a “significant British achievement”, and a huge step to boost the British economy.

It allowed for free movement of all types of resources; goods, services, capital and people, within the 28 EU countries.

With no internal borders, and other regulatory obstacles, the Single European Market eliminated unnecessary tariffs, and trade barriers.

Allowing businesses in Europe to freely trade with one another, and giving UK-businesses a wide platform of trade and commerce.

 For example, prior to Brexit ever happening, a car-maker in the UK could easily sell his cars in France, Spain and to customers virtually all across Europe.

For each sale, he will usually invoice the customer for the price of the car, any cargo or shipping costs, & UK’s V.A.T.

The customer, in France, will simply pay for the car, and knowing that the UK car-maker is an EU member, and would have complied with the necessary EU trade and product standards, will know that the car he is buying is fit to drive, and ready to use straight away.

This ease-of-business for the car-maker allowed him to sell his cars to customers all across Europe, giving him a large European customer-base.

By selling to a wide range of customers, in different countries, also allowed the

Car-maker to expand his operations and company, and hire more staff locally.

Being in the same market, and competing with other car-makers across EU, the UK car-manufacturer would also need to be innovative, and improve his products to stay competitive in a larger, European market. If not, he could easily lose his customers to any other car-maker in the EU.

 Now that Brexit has happened, the wide EU market that was previously available to all UK businesses, is set to disappear, and be replaced with a whole host of trade obstacles.

 The same UK car maker’s customer in France, will not only pay for the price of car, shipping charges and VAT, but also now pay for additional import-tariffs, which are estimated to be as much as 6% to 10%. Resulting in additional costs for the customer.