EU publishes no deal contingency measures

Supply chain

Brexit pulse alert: respond to the business impacts of Brexit

10 December, 2020

Brexit development

The EU has announced a range of measures in an effort to maintain basic connectivity in the event of no wider agreement on the future relationship with the UK being reached.

Up to this point, the EU has mostly held back on easements, preferring instead to try and settle matters in the negotiations. However, time has now run so short, the EU has chosen to publish them. These measures cover areas such as aviation, road haulage, and fishing. However they do not cover data, something many businesses on both sides of the Channel had identified as crucial.

Top Brexit impacts

On aviation, carriers would be able to continue to operate between the UK and the EU, and would be able to take on traffic destined for their home market in member states. This provision would last for six months, and requires UK reciprocity which would almost certainly be forthcoming. The approach does not include additional time for transition of ownership of EU carriers, in this respect this notice is slightly less generous than the previous no-deal aviation notice.

On road haulage there will be a six month extension which maintains the ability of UK road haulage operators to continue to carry goods from the UK to the EU. This is helpful for UK haulage and supply chains in general, but requires application of rules equivalent to EU rules on fair competition and social rules. This should not be a substantial issue in the first six months of 2021 as, bar some emergency legislation, the UK has few plans to diverge that quickly. There are some difference from previous approaches, in that this notice does not recognise EU operators’ UK licences.

Actions for business

Businesses based in the aviation, road haulage or fishing sectors should review these notices in detail to confirm how it impacts their day 1 planning.

Other sectors, not directly impacted may also wish to consult with their logistics provider to see if these notices have altered any contingency planning they may have undertaken. 

To discuss specific support with your Brexit preparations based on this latest development contact: Deloitte Brexit Insights

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