Analysis

International road transport

Brexit deal analysis 

What does the Trade Agreement say?

  • The FTA allows for continued access for road hauliers on either side without any permit requirements. 
  • Hauliers will be able to perform two extra operations within the other party’s territory (of which maximum one cabotage operation for hauliers from the other party). 
  • The FTA also provides for full transit rights across the territories of either party (e.g. ensuring transit rights across Great Britain to the Republic of Ireland from the EU).
  • Additionally, it sets out the standards which hauliers must adhere to when operating journeys between the UK and EU (including licenses and certificates of professional competence).
  • The FTA allows for the continuation of passenger bus services between the two sides.

How does this compare to what was expected?

  • The approach is slightly better than expected with no permits being required. In this sense it goes beyond previous precedents agreed in FTAs (though it has never been as relevant given the proximity of the UK).   
  • However, the limited ability for hauliers of either party to perform cabotage operations in the other’s territory could mean added complexity to supply chains.

What are the actions for business?

Consider your current approach to transporting goods. If you utilise a haulier from the other party, do they perform multiple cabotage operations in the other’s territory? If so, alternative arrangements may need to be put in place to manage transport of goods or collective of goods within the territory. 

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

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