UK companies would incur tariff costs after no-deal Brexit: survey

LONDON (Reuters) - Almost 40% of British businesses with suppliers in the European Union have signed 'Brexit clauses' to allow prices or other terms to be renegotiated if trade tariffs return after a no-deal departure from the bloc, a survey showed on Wednesday.

Reuters September 18, 2019 05:06:54 IST
UK companies would incur tariff costs after no-deal Brexit: survey

UK companies would incur tariff costs after nodeal Brexit survey

LONDON (Reuters) - Almost 40% of British businesses with suppliers in the European Union have signed "Brexit clauses" to allow prices or other terms to be renegotiated if trade tariffs return after a no-deal departure from the bloc, a survey showed on Wednesday.

The Chartered Institute of Procurement & Supply (CIPS) said the survey of 817 supply chain managers in Britain and the EU showed that British firms would incur the cost of any tariffs when buying parts from the bloc, potentially pushing up prices.

"These potential additional costs are being written into contracts ahead of time," CIPS economist John Glen said. "Where this would be particularly damaging is SMEs (small and medium-sized enterprises) who are not flush with cash."

British companies are struggling to prepare for Britain's departure from the EU - the country's biggest trade upheaval in half a century - due to extreme levels of political uncertainty.

Prime Minister Boris Johnson has vowed to take Britain out of the world's biggest trading bloc by Oct. 31 with or without a deal, but opposition lawmakers are trying to force another delay.

The survey, which monitors businesses in sectors including aerospace, construction, food and medical, also found only 22% of respondents among British firms with EU suppliers believed they had completed the paperwork to trade outside the bloc.

(Reporting by Kate Holton; Editing by Mark Potter)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.