Commercial Uncertainty For The Cross-Border European Market

Author:Giambrone Law ILP
Profession:Giambrone & Partners
 
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All across the EU businessmen and women are slamming on the brakes as the spectre of commercial uncertainty rises higher following the results of the British parliamentary vote. The vote, now won, which the government hoped would allow another round of EU negotiations to amend the current Brexit deal, only to have the EU state, within a blink of an eye, that the deal was set in stone and no further negotiations would a) be likely to happen or b)change the deal. Infuriated businessmen and women, particularly those in the UK, who opted to stay calm and not panic, who trusted the Prime Minister when she said that she would not let Britain fall off the cliff-edge are now facing declining order books, retreating suppliers and a very different from expected "cliff-edge" sort of a future. UK businesses that have been successfully operating for years, decades even, across Europe are now in no doubt that they have been comprehensively let down.

Those UK businesses in the European market have hard choices to make, do I go or do I stay? Some businesses will trigger a relocation plan as the toxicity of uncertainty is too damaging to their brand. Others will dig in and hope to forge a path in new markets, by no means a guaranteed strategy for success despite all the breezy statements about leveraging trade deals with South Korea, Canada and Mexico. Every business person knows that in order to get a new client the previous supplier's fingers have to be prised off the target client with the offering of a better price or service, often squeezing the margins until they all but disappear.

Dr. Adam Marshall, director general of the British Chambers of Commerce, commented in the Daily Telegraph, "I am glad that more...

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