: Britain is unprepared for real Brexit: official reports

Lorries parked at the port of Dover, England.

AFP via Getty Images

Both the Bank of England and the public spending watchdog have sent warnings about the ability of the U.K.’s government and businesses to smooth the exit of the country from the European single market on Dec. 31.

• The National Audit Bureau said on Nov. 6 in a report that British ports haven’t yet integrated or tested crucial information technology systems for the day when exporters and importers will have to fill customs forms and safety declarations.
• Meanwhile, transit areas for lorries that will have to wait and go through new controls aren’t ready, and the abrupt transition will be made worse by the lack of customs sites and agents, the report notes.
• “The increasing time pressure and risks mean that the government is committing a lot of money to progress preparations in areas, such as port infrastructure and customs intermediaries, which would traditionally be provided by the private sector,” the report notes. 
• The Bank of England said on Nov. 5 in its monetary policy report that even if a trade deal is signed with the European Union in the coming days, major disruptions are expected at U.K. borders, and it noted that many businesses haven’t yet prepared for the complexities of life after Brexit.
• The U.K. government and private businesses have embarked on a hiring spree of 50,000 new customs agents and specialists to deal with the exit from the Union. That is more than the number of employees of all EU institutions combined.
• According to Sky News, chief EU negotiator Michel Barnier wrote in a confidential memo to EU governments that the U.K. is trying to run down the clock and ”blocking” progress in key areas.

Opinion: From lockdowns to Brexit, the U.K. economy is heading toward a rough winter

The outlook: A trade agreement would make the transition easier, but after two weeks of intensified negotiations and 10 months of prior talks, the two sides don’t seem closer to a conclusion. A treaty must be concluded within days to be ratified by parliaments by the end of the year.

The U.K. economy will be Europe’s worst-hit by the coronavirus pandemic, as confirmed by the European Commission’s economic forecasts. It would sink further in the scenario of a so-called “no-deal” Brexit, but brinkmanship could nonetheless lead to that punishing outcome.

Sept. 2020: Biden to Brexit Britain: No trade deal with U.S. if you mess with Ireland

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November 13, 2020 at 11:46PM

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