Brexit: UK warns of higher costs if talks fail

Glen Norman
August 24, 2018

It is also clear that the withdrawal of the United Kingdom is going to lead to disruptions regardless, with a deal or without a deal.

"We are seven months away from Brexit and there have not been any discussions or negotiations about access rights for British hauliers into the European Union - certainly with a no-deal", he told BBC Radio 4's The World This Weekend. "It's right and responsible that the government have supplied information to businesses on issues from financial services passporting to food labelling, all of which will help lower the risks of the harshest outcomes from a "no deal" Brexit". Sign-up now and enjoy one (1) week free access!

"We have developed our own Brexit continuity endorsement for use on programmes when we are not yet satisfied that a carrier has a robust solution, and a Brexit contingency product", says Aon.

Brexit Secretary Dominic Raab on Thursday released 25 so-called "technical notices" that covered everything from financial services to nuclear materials, advising companies and the public on how to prepare for such a scenario.

The chancellor also repeated a promise to provide MPs with an analysis of a deal the government strikes with Brussels before a parliamentary vote on such an agreement.

The notice states: "After EU exit, to market a product in the United Kingdom, an initial market authorisation application will need to be submitted to the MHRA and will go through a national assessment".

The government said it would "take full account of the unique circumstances of Northern Ireland" in its no-deal planning. Prime Minister Theresa May's plan for a "business-friendly" deal has failed to impress negotiators in Brussels and has been heavily criticised at home.

Mr Raab added that 80% of the EU Withdrawal Agreement had already been agreed, and that no deal was becoming less and less likely - but that the Government is preparing for every eventuality.

Nearly every section had a small explanation at the end highlighting "the very significant challenges that the lack of a UK-EU legal agreement would pose in this unique and highly sensitive context".

With no Brexit deal, EU countries would no longer accept British driving licences or essential air safety certificates - plus for those with serious health conditions, the loss of the European health card could make travel impossibly expensive.

"The committee will expect an updated analysis to be published in good time to inform parliament's key decisions on the final deal".

Food companies would have to register with a new (and as yet non-existent) United Kingdom authority which would be needed to replace the EU's "TRACES" system that tracks the trade and certification process for animals, food, feed and plants across Europe.

And Foreign Secretary Jeremy Hunt has warned that without a change of approach there is a "very real risk of a Brexit no deal by accident".

The Medicines and Healthcare products Regulatory Agency (MHRA), which regulates drugs in the United Kingdom, will take on the functions of the European Union if an agreement is not reached by March 29.

Ratings agency A.M. Best highlighted recently how United Kingdom re/insurers are moving forward with their Brexit plans, a trend that appears to be increasingly driven by a lack of clarity from the United Kingdom government.

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