A standstill in Brexit talks: What this means for British businesses

Stalls to Brexit talks due to the global COVID-19 pandemic leave British businesses shrouded in more uncertainty. With the December deadline looming, the government does not plan to ask for an extension, raising concerns over what deals can be achieved quickly.

Stalled negotiations, but not deadline sought

The paymaster general, Penny Mordaunt, claims that the UK will not be asking the EU to extend the Brexit transition period at the approaching Brexit joint committee meeting. However, Brexit progress has already been detrimentally impacted by the urgency of managing the COVID-19 pandemic as a clear priority.

Previously, much of UK politics and journalism had heavily focused on Brexit talks. However, as lead negotiators became infected with the virus, such as Boris Johnson, and the situation became more urgent, Brexit talks halted. According to Mordaunt, the deadline remains on December 31st, and no motion will be made to extend this.

Uncertainty for British businesses

The impact on British businesses has and will be significant. The standstill in talks has meant that companies have been left in the dark about important how factors will change with the UK’s exit from the EU. There are still many question marks surrounding how international trade will proceed, with new trade deals failing to be struck amidst the pandemic.

There are rising concerns over the capability of reaching agreeable deals by the deadline. While talks have resumed, they have yet to achieve success. Recent negotiations have met significant areas of disagreement, with fishing and the use of British waters remaining an emblematic problem. 

The major problem with delayed negotiations for British businesses is that they cannot plan accurately for the near future. This is a significant drawback to any business, but particularly for those that rely on international trade. For some companies, there will be little indication as to how rules and regulations will change, which will force them to behave reactively once deals are struck.

Navigating the changes afoot will be challenging; however, being equipped with correct, comprehensive knowledge about these changes will foster success. Export Portal is dedicated to seeing its clients through these uncertain times by communicating relevant trade news in an accessible format.