BREXIT - What Will This Mean for Global Trade?
EAST RUTHERFORD, NJ, June 24, 2016 – Today, the British public voted in favor of "Brexit," or exit from the European Union. Of the British electorate, 17.4 million (51.9%) cast their votes in favor of Brexit compared to 16.1 million (48.1%) in favor of continued membership. Turnout was higher than expected at 72.2%.
2-Year Process for Leaving the EU
As is currently foreseen, a new UK government will be in place no later than October 2016. The new Government will trigger Article 50 of the Treaty on the European Union as soon as possible by notifying the European Council of the UK's intention to leave. This notification will set the timer on a two-year countdown within which the United Kingdom and the remaining EU Member States will negotiate a withdrawal agreement.
A final agreement will need to be ratified by EU leaders by way of a qualified majority vote, a majority of the European Parliament, and by the national parliaments of the EU-27. If no exit agreement can be reached between the UK and the EU-27, the EU Treaty foresees an automatic exit of the UK.
Hence, the UK will not officially exit the EU until at least two years from now.
For the first 2 years, until the UK officially exits the EU, it is expected that EU customs and trade laws will remain in place in the UK.
One of the areas that will have an impact after exit from the EU is Free Trade Agreements (FTA). When the UK exits the EU, it will cease to be party to the EU trade agreements and preferential programs and it will have to renegotiate separate and new trade agreements.
Other global trade areas that will be impacted are, amongst others, tariffs (HS classification) and duties, export control regulations, sanctions and embargo policies, antidumping considerations and customs procedures.
Amber Road (NYSE: AMBR), a leading provider of Global Trade Management (GTM) solutions, will track any changes with regards to the UK's exit process and resulting changes to the UK trade and customs laws and notify its customers accordingly.
Amber Road covers 147 countries of trade content and has a large staff of in-house trade specialists around the world updating these country-specific trade regulations on a daily basis. Over the next two years, Amber Road will be making internal adjustments to ensure that our trade compliance software and content aligns with these changes for our valued customers.
Please join us at our Amber Road Seminar in London on June 28, 2016 at Radisson Blu Edwardian Vanderbilt Hotel London to find out more about the implications of Brexit for companies conducting business in the UK and globally.
About Amber Road
Amber Road’s (NYSE: AMBR) mission is to improve the way companies manage their international supply chains and conduct global trade. As a leading provider of cloud based global trade management (GTM) solutions, we automate the global supply chain across sourcing, logistics, cross-border trade, and regulatory compliance activities to dramatically improve operating efficiencies and financial performance. This includes collaborating with suppliers on development, sourcing and quality assurance; executing import and export compliance checks and generating international shipping documentation; booking international carriers and tracking goods as they move around the world; and minimizing the associated duties through preferential trade agreements and foreign trade zones. Our solution combines enterprise-class software, trade content sourced from government agencies and transportation providers in 145 countries, and a global supply chain network connecting our customers with their trading partners, including suppliers, testing/auditing firms, freight forwarders, customs brokers and transportation carriers. We deliver our GTM solution using a Software-as-a-Service (SaaS) model and leverage a highly flexible technology framework to quickly and efficiently meet our customers’ unique requirements around the world.