The organisation that represents the freight and logistics industry in the UK, the Freight Transport Association, or FTA, is urging the government to look again at their decision to leave the EU Customs Union. The Association has made this call to the government following the confusion of the snap General Election results and the lack of clarity from the British voters in terms of a mandate.
After the result of the election last week, both exporters and importers are confused about what the impact could be on future Brexit talks. There is also a concern about what the impact could be of the election and brexit on supply chains. The FTA have mentioned that valuable time has been lost planning for the Brexit negotiations with the EU because of the campaigning for the election. Now that the Government try to claim back some normality it has been suggested that working to support sectors such as the logistics sector in order to make sure that industry can continue with customers and suppliers in the EU.
Leaving the EU customs union could lead to tariffs and border checks being introduced. This will cut into delivery times and costs. Therefore it is vital for industry in the UK that a new trade agreement be created to give some clarity about trade in the future. This kind of deal would have been better delivered from a position of power, from a government with a strong mandate, however, this position is now in doubt because of the result of the election.
The concerns in the logistics sector could have a knock on effect in aras such as the manufacturing industry. Any concerns over the impact of the election and Brexit could be passed back up the supply chain to manufacturers, who might have a narrower customer base because of the concern and confusion in trade at the minute.