Brexit: Changing the Terms of Trade

Running head: BREXIT: CHANGING THE TERMS OF TRADE.
BREXIT: CHANGING THE TERMS OF TRADE
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1BREXIT: CHANGING THE TERMS OF TRADE
Topic: Given the possibility that judgements from the UK courts may not be easily
enforced in EU member states post Brexit, what advice and practical guidance would
you give to a commercial entity involved in the international sale of goods between the
UK and EU member states so as to mitigate this uncertainty? Why?
Post-Brexit the scenario of international business, for both the European Union (EU)
and the United Kingdom (UK) will be different. The broader market place is now expected to
shrink. Commercial entities will be experiencing changes in the currency and labour market.
The availability of labour is sinking because of the restrictions that are going to be imposed
on migration in the UK and EU for education and employment1. The changes in the currency
will make export costlier2. EU funding is likely to end, resulting in uncertainties in the
business environment. Thus, auditing of international contracts needs to be considered for the
low VAT trade of goods3. This will have an impact on the availability of certain supplies of
goods, that is, exports and imports. The international imports and exports are assumed to be,
placed under administration. Cross border transit may face additional hurdles affecting the
commercial units engaged in trade4. Separate trademarks and designs will be allocated to the
patent holders once the UK exits the EU. Now, the trade will consist of tariffs and quotas,
hence, enlarging the cost of production. Future trade agreements are assumed to get affected
1 Lawless, Martina, and Edgar LW Morgenroth. "The product and sector level impact of a hard Brexit across the
EU." Contemporary Social Science (2019): 1-19.
2 Crowley, Meredith, Oliver Exton, and Lu Han. "Renegotiation of trade agreements and firm exporting
decisions: Evidence from the impact of Brexit on UK exports." (2018).
3 Hobolt, Sara B. "The Brexit vote: a divided nation, a divided continent." Journal of European Public
Policy 23, no. 9 (2016): 1259-1277.
4 Dhingra, Swati, Gianmarco IP Ottaviano, Thomas Sampson, and John Van Reenen. "The consequences of
Brexit for UK trade and living standards." (2016).