EAMA Grassroots Survey
Brexit impact on UK supply chains
EAMA and its associations have been engaging with the Government Department for Exiting the EU (DExEU). In these exchanges it has become clear that member firms are uniquely able to provide a fact-based picture of how leaving the EU is likely to affect our supply chains which will be really useful to DExEU in the Brexit negotiations.
As you know, the default option (basically if negotiations fail) will probably be to trade under World Trade Organisation (WTO) rules. Please see Note 1 for a brief summary of the current context and WTO’s basic rules.
Please help us build up an evidence-based perspective by completing the following survey, even if you have to leave sections blank. Your data will remain anonymised. Thank you.
Contact name(in case info check) / Tel no
“What would be the impact on your company if the UK ended up simply trading under WTO rules with the EU and other countries?”
(The following note is a very brief summary of the changes that could occur)
Note (Source: House of Commons Library Briefing for MPs 8 September 2016)
The UK currently follows EU regulations for trade between Member States (MS):
- No customs duties or quotas
- Elimination of non-tariff barriers (e.g. tech spec and labelling)
WTO Principles:
- WTO member states mustn’t treat any other member state less advantageously than any other: grant one country preferential rights, the same must apply to all other WTO members.
- There are exceptions for regional free trade areas and customs unions like the EU, but the principle implies that, outside of these, the tariff that applies to the ‘most-favoured nation’ (MFN) must similarly apply to all.
UK under WTO rules
- Access to the EU Single Market on the same terms as countries that have no agreement, e.g. 10% on cars
- UK loss of access to EU market in services
- No contribution to EU spending, no need to accept freedom of movement
- Longer term, danger of creeping divergence between UK and EU standards
AYour company (Please tick as appropriate):
Number of employees / <10 / 10 to 49 / 50 to 249 / >250Turnover / <£1.5m / £1.5m to £8m / £8m to £40m / £40m
BExporter status:
1 / Are you: / a) A regular exporter / or b) an ad hoc exporter2 / Total exports as approx. share of turnover / %
3 / Exports to EU as approx. share of total exports / %
Example product:
4 Approx. % value make -up of product or system exported:
Share UK manufacture including UK made components / %Share imported components (if any) / %
5 / Where does the product fit in the supply chain?:
Is it exported to?
Yes / Nothe EU
the Rest of the World (RoW)
Yes / No
Are there any significant differences in your export processes between the EU and RoW
If yes, please summarise making any approx. costs or savings clear
6What is the likelihood over the next three yearsthat your company:
High / Medium / Low / % approx. of revenueWill gain more EU business:
Will lose EU business:
CImporter Status
1 / Are you: / a) A regular importer (e.g. distributor) / or b) an ad hoc importer (e.g. materials)2 / Total imports as approx. share of turnover / %
3 / EU imports as approx. share of total imports / %
Example product:
4 Approx. % value make up of product or system sold:
Share UK added value including UK made components: / %5 / Where does the product fit in the supply chain?:
Is it re-exported to?
Yes / Nothe EU
the Rest of the World (RoW)
Yes / No
Are there any significant differences in your import processes between the EU and RoW
If yes, please summarise making any approx. costs or savings clear
6What is the likelihood over the next three years that your company:
High / Medium / Low / % approx. of revenueWill gain more UK business:
Will lose business in the UK:
DBurdens
Under WTO rules what impact would you expect changes to the following to have on your business?
Impact?Very positive / Fairly positive / No or very little change / Fairly negative / Very negative
Trade tariffs
Rules of origin
Impact on delivery times
Cross frontier admin (e.g. VAT)
Non-tariff barriers
EFreedoms
Fewer regulations: which areas?
FAny other comments
THANK YOU!