Brexit, the UK's exit from the EU, was officially completed on 31 January 2020. However, the new economic framework conditions for companies in the German-British corridor are far from final: in 2024 and the coming years, the focus will shift to various regulatory and legal adjustments. What changes need to be prepared for? And what consequences can be expected from the ongoing decoupling of the UK market? We have analysed this in our latest whitepaper. Companies receive practical recommendations for action.
Andreas Glunz
Managing Partner International Business
KPMG AG Wirtschaftsprüfungsgesellschaft
One thing is clear: Brexit is having a lasting negative impact on German-British economic relations and a fundamental turnaround is not in sight. These are key findings from our German-British Business Outlook 2024, which was published at the same time. For example, the percentage of companies for which Brexit has led to an improved business situation has halved again from 2023 to 2024 - from 13 percent to 6 percent - from an already low level.
It is also clear that the situation remains complex, as many regulations that have been harmonised between the EU and the UK to date will be successively modified or replaced from 2024. In addition, new regulations are constantly being added in the EU and the UK, for example with regard to supply chain due diligence obligations or the CBAM (Carbon Border Adjustment Mechanism). These regulations differ significantly between the EU and the UK and will lead to new administrative burdens and additional costs for companies operating in the UK-German corridor. The whitepaper examines the six issues that the companies surveyed identified as particularly burdensome.
The topics at a glance:
- Consequences of the introduction of the UK's Border Target Operating Model in 2024
- Replacement of previously retained EU laws with UK law
- Regulations on due diligence in the supply chain
- Updates on work visas and immigration
- Replacement of the customs clearance system "Customs Handling of Import and Export Freight (CHIEF)" with the "Customs Declaration Service System (CDS)"
- CBAM regulations (Carbon Border Adjustment Mechanism)
Brexit is far from over. Complex legal adjustments in both economic zones are leading to increasingly divergent framework conditions for companies. The non-harmonised regulatory changes will make careful monitoring and analysis of the impact on day-to-day business essential for years to come.
