The No-Deal is closer than ever. The already difficult relations between the European Union and the United Kingdom risk to further deteriorate after the decision made by UK’s prime minister, Boris Johnson. In other words, the approval of the Internal Market Bill, a law that touched already agreed-upon terms signed when the divorce took place. The move made the EU concerned, and in turn they have asked the UK to repeal the law by the end of September.
Internal Market Bill
One of the goals of the Internal Market Bill (to be approved) is that of avoiding the creation of customs and a physical border between the two Irelands. This way, the commercial status and custom status between the two countries would have to be revised. Europe has threatened legal actions. As reported by Il Sole 24 Ore, the Commission’s president, Ursula von der Leyen, has repeated that “It’s unlawful to modify the agreement with Europe with unilateral choices”. Mr. Johnson, on the other hand, stated that it’s essential to combat the EU’s “absurd” threats.
No more tax-free
London is also preparing for the No-Deal on other fronts. For example, the announced stop to “tax-free” shopping from 2021 onward. Foreign visitors, simply put, will no longer benefit from the tax-free benefit, and will thus need to pay sales taxes on goods bought in airports, harbors and Eurostar stations located in the UK.
Concerned automotive (and others)
And more. The forecast of an exit without an agreement concerns Europe’s automotive industry, which fears 110 billion euro losses within the next 5 years. Of course, there will also be issues at customs, as goods travelling between Europe and the UK will be blocked. According to the Financial Times, 66% of British shippers don’t have enough personnel to manage bureaucratic documents necessary after January 1st, 2020.