Dutch agribusiness must prepare for major chaos after Brexit. If the Brexit negotiations fail, there will be no new trade rules ready.
This 'no-deal scenario' was not thought possible for a long time, but the standing committee for European Affairs warns here in a investigation report indeed for. The main political hurdle in the negotiations is the financial settlement. If no agreement is reached, the United Kingdom (UK) will leave the European Union (EU) on March 29, 2019. Without a withdrawal agreement, transition period or joint framework for new relations.
Be prepared
A chaos scenario, because then a Brexit will take place without any trade rules and bilateral treaties in place. According to MPs Anne Mulder (VVD), Pieter Omtzigt (CDA) and Kees Verhoeven (D66), the government services should prepare.
Playbooks must be ready and supervisors should be able to check whether government services and companies are well prepared. For example, more supervision and control will be required by customs, the Royal Netherlands Marechaussee and (phytosanitary) inspection services.
Mute Effects
Economic sectors such as the logistics sector, agriculture and fisheries must also be prepared for the scenario. The rapporteurs state that it is obvious that companies and their industry associations take the lead in this and that the government is helping so much with necessary measures to mitigate the effects of this scenario.
Omtzigt said on NBR that Dutch companies and banks run risks as a result. "Without agreements, we don't know when someone is allowed to do business and what exactly is the framework within which he is allowed to do so." As a result, companies and banks may have to deal with tariff walls and long queues at customs.
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