Brexit Update – August
Brexit: it is having an effect yet?
We promised to keep our clients and customers informed of the impact of Brexit. There’s a lot happening, even though nothing is actually happening … yet …
One of the most newsworthy issues to come out of Brexit is the volatility of the currency market. As the Greater Manchester Chamber of Commerce state in their article from the beginning of last month, the currency markets have seen sterling weakened against the Dollar, falling to rates not seen since 1985.
There are winners and losers with such volatile markets.
In theory, this should be a great time for our exporters who ought to be finding their goods more affordable. For importers, though, there may have to be precautionary measures to ensure their profit margins are protected.
But the GM Chamber rightly states: “It’s also not as straightforward as considering importers as the losers with victorious exporter – as many exporters also import elements of their merchandise for production.” GMChamber.co.uk
Chamber of Shipping sitting on the fence
The UK chamber of Shipping has remained neutral on the subject of Brexit, stating that: “We are still an island nation that has to make its way in the world through buying and selling, and the shipping industry is here for that purpose . . . shipping moves 95% of the UK’s international trade and we don’t see that changing,” themeditelegraph.com
Managing Brexit is key …
Fairplay had an interesting set of pro-brexit reactions: “What we need now are cool heads. We’ve had the political debate, now it’s time for rational and strategic thinking … Leaving the European Union is a process, not an event, and that process has to be managed carefully … David Cameron’s decision not to immediately invoke Article 50 is a welcome one, and there should be no rush to do so … We believe that Government should establish a new Free Trade Commission, working across the Department for Business and the Foreign Office, to train trade negotiators and begin the process of establishing new trading ties around the world and be ready for the negotiations with the remaining members of the EU”. Fairplay.ihs.com
Whether this new Free Trade Commission is established or not, we wait to see with baited breath.
Sensible round up
By far our favourite round up of Brexit news comes from the Economist, which has a special Brexit section for those who need to know what’s happening: http://www.economist.com/Brexit
Though broadly anti-Brexit, the Economist, as always, provides balanced views and some genuine insight into the effects, issues and possibilities that the Brexit vote has revealed.
Nobody knows …
In the main, though, uncertainty remains very much the watchword of the hour.
With a new PM in Westminster, uncertain opposition, a possible radical change in the US and the ever present lottery of when Article 50 will finally be triggered, many businesses are sitting on their hands and will continue to do so in the near future.
Business as usual
The only option, therefore is to continue to do business as we have done. And for our clients at Freedom, this is certainly the case.
Import and Export continues as normal, though we do suggest that our customers look carefully at their hedging options, to make sure that they are not left with a serious liability in the current currency rollercoaster.
For more information about this, or for some plain advice, get in touch and speak to one of our advisors.
Institute of Export Post Brexit Planning Workshop
For those who are interested, the Institute of Export are delivering Post Brexit Planning Workshops on the following dates:
- 04/08/2016 – London
- 31/08/2016 – Birmingham
- 21/09/2016 – Manchester
- 25/10/2016 – London
- 24/11/2016 – Manchester
The workshops content will include customs clearance, tariffs, Trading Blocs, Free Trade Agreements, Customs Unions and Free Trade Zones. This is an excellent opportunity to discuss and develop your next steps after the Brexit.
Tell us what you think
We are always looking to help and assist our clients in every way we can. To this end we believe we would all benefit from some collective thoughts and ideas about how we are all dealing with brexit.
So do get in touch and let us know your thoughts, advice cries for help, or anything you believe other, like-minded businesses would benefit from.
Likewise, if you have any questions or queries or fears about the current situation (or the future possibilities) then by all means get in touch. We can’t guarantee to allay your fears, but we can guarantee that we will do our utmost to always find the best solutions for you.
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