BREXIT
Brexit process and a nodeal
scenario may create
additional complexity for
business, particularly smaller
enterprises. We will continue
to support our customers,
drawing on our history as
an enabler of global trade
with experience operating in
complex and evolving trade
environments,” he adds.
A word from BIFA
Robert Keen, Director General
of the British International
Freight Association (BIFA),
has steadfastly refused to
commit himself to speculative
comments on what the Leave
Europe vote will entail.
Nonetheless, he has been
advising his members to
continue preparing for a
no-deal departure (as would
have been the case back in
March), until further clarity
is obtained. This, in fact,
has been the advice of the
trade association for freight
forwarders for several months.
Keen comments:
“Confusion reigns. A nodeal
departure would be very
disruptive and damaging for
the UK economy as a whole,
but freight forwarders, many
of whom are Authorised
Economic Operator accredited,
would play a key role in
tidying up the mess left by
the politicians by ensuring UK
importers and exporters can
continue trading with the rest
of Europe as best as possible
after March 29.
“I am pleased to report
that BIFA members are ahead
of the curve and planning
for every eventuality, with
their trade association trying
to make sure it gets relevant
information to its members,
following the release of that
information from the various
UK government departments.
“BIFA’s executive
management has engaged
with various government
departments over the last two
years regarding the issues that
affect the movement of visible
trade post-March 29, in order
to provide our members with
advice on those discussions,
whenever procedures are
fi nalised. Our members have
also been discussing the
possible impacts with clients.
“Large and small, BIFA
members have taken actions
to review all options to
overcome the disorder that a
no-deal Brexit could bring to
international trade in order to
defi ne sustainable solutions
as the set of Brexit conditions
becomes clearer. One thing
is certain: our members are
ready, willing and able to
clear up any mess, regarding
the movement of freight into
and from the UK, created by
politicians.”
BIFA members
are ahead of the
curve
Robert Keen, Director General, BIFA
READY FOR TAKE-OFF?
Alex Veitch, Head of Multimodal Policy at the FTA,
admits that the aviation sector is one of the most
agile fi elds in transport and logistics. “It is no
surprise, then, that it has been planning for the
UK’s withdrawal from the EU for some time,” he
says. “But with the UK and EU27 yet to reach an
agreement on its trading relationship post-Brexit, the
ongoing political and regulatory uncertainty has left the
sector in a holding pattern. As the UK government desperately
tries to reach an agreement by the new deadline – October 31, 2019 -
where does this leave the air cargo sector?
“If the UK leaves the EU without a deal, temporary arrangements
have been agreed to allow air connectivity between the UK and the
EU territory, but there would be some restrictions on cabotage for UK
cargo operators. And while air freight security (ACC3) arrangements
will enable direct cargo fl ights to continue, the connectivity
arrangements are for a 12 month period only from the date of the
UK’s departure; contingency arrangements are also in place for
safety authorisations and detailed sector-specifi c regulation. More
broadly, in a no-deal scenario, the UK and the EU would need to put
in place a long-term stable Air Services Agreement and permanent
arrangements on technical and safety matters as soon as possible.
To protect both cargo and tourism, FTA expects negotiations on these
areas to be near the top of the agenda for both sides as discussions
continue; we will be campaigning hard to ensure this is the case.”
He says that the FTA hopes that the UK Parliament will approve
the Withdrawal Act and Political Declaration to prevent a no-deal
Brexit from happening in October. “If an agreement is reached, it
would be ‘business as usual’ for aviation, while the future political
and economic relationship is fi nalised. The Political Declaration,
which points towards the fi nal deal, includes positive statements on
aviation, committing both sides to “ensure passenger and cargo air
connectivity through a Comprehensive Air Transport Agreement.”
Outside of these scenarios, he adds, “it is diffi cult to gaze too
much into the Brexit crystal ball. If the UK decides to go for a softer,
Norway-style Brexit or Single Market 2.0, then we might fi nd little
would change materially for air cargo. However, a harder, Canada
Plus Brexit, or a Brexit that involves staying in a Customs Union, but
not the Single Market, would likely require a future CATA.”
The risk of no deal has receded, but it remains the legal default.
“FTA is grateful for the extra preparation time the agreed
extension offers to its members and advises them to use this time
wisely to advance their No Deal preparations. The FTA will keep
pushing for the best outcomes for the sector, while continuing to
support its members in their preparations and remaining vigilant to
respond quickly should the situation change.”
As Veitch concludes, effi cient logistics are vital to keeping
Britain trading, since they directly have an impact on more than 7m
people employed in the making, selling and moving of goods. With
Brexit, new technology and other disruptive forces driving change in
the way goods move across borders (and through the supply chain),
logistics has never been more important to UK plc.
CERTAIN UNCERTAINTY?
As readers are now aware, the decision to delay the exit process to
October 31 has been agreed. Whilst the extra leeway could be put to
good use, equally it’s fair to assert that the same old stalemate could
be haunting the headlines this autumn. The prolonged procedure is
doing little to reassure the cargo community, which continues to await
some sort of tangible resolution.
So… will it be trick or treat?
28 June 2019 www.airlogisticsinternational.com
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