brexit edges uk companies out of eu supply chain

by:Gewinn     2020-06-07
Shipley, England (Reuters)-
Mandy Lidia knows that Brexit will be a challenge for her airline parts company, but she was still shocked when she heard a French company directly exclude British suppliers from China\'s international bid contract.
The uncertainty about Brexit is too big to include British companies in the group, a representative of the company said at a meeting of British and French business delegates and government officials in February.
Speaking of the meeting, Ridyard said: \"The elephant in the room is the British exit from the EU, which is organized by the British embassy in Paris and aims to promote more bilateral business, but that will only increase her anxiety about Brexit.
\"If companies are not currently looking for their products in the UK, then we will fail in a generation of strategic transactions,\" said Ridyard . \".
\"That business is gone.
\"As the UK enters key Brexit negotiations this year, one of the biggest concerns for manufacturers is an integral part of cross-trades
Border trade: customs system.
There are signs that many EU companies are blocking the use of UK companies in their supply chains --
This may involve some criss-
Crossing the border many times
Because they still don\'t know the possibility of expensive delays in tariffs, regulations, and borders.
Jeegar Kakkad, policy director at the British aerospace trading group ADS, said large airlines now require UK suppliers to store their inventory for one month at their own expense to offset the risk of delays in Brexit border.
\"It will be a big challenge, especially for small companies,\" he said . \".
The UK economy has slowed sharply since the Brexit referendum in June 2016, but Ridyard\'s company, Produmax Ltd. , is currently taking advantage of the storm.
In its factory in Shipley, Shipley is a historic manufacturing center near the northern British city of Leeds, once known for its wool and cotton mills, workers using precision milling machines and lathes process steel and aluminum blocks into flying-
Key components for aircraft wing flaps.
Ridyard and her husband, Jeremy, acquired the company in 1997 and hired 71 employees, which will soon open a second website.
However, a new job recently
Work that no other supplier can do for a long time
Period of strategic contract.
\"It doesn\'t make sense to complain,\" said Ridyard, the company\'s chief financial officer . \".
\"We are still investing.
But we just hesitated a bit more than before.
Employer groups say the best way to limit the impact of Brexit is to keep the world sixth
The largest economy in the EU customs union.
Although staying in the customs union will not affect Britain\'s vast service sector, it will avoid imposing tariffs on trade in goods with the EU, which is crucial for many manufacturers who have spent years honing --in-
This can reduce the risk of border delays.
This also avoids the risk that the new hard border with Ireland could trigger new sectarian violence 20 years after a peace deal for Northern Ireland.
However, Prime Minister Theresa May has ruled out the option of a customs union.
Activists for Britain\'s exit from the EU, including some of May\'s own ministers, oppose it because it will prevent Britain from reaching a bilateral trade deal, a big advantage for Britain\'s exit from the EU, according to the 2016 Brexit campaign
Liam Fox, the trade minister who supported the leave, said that staying in the customs union would be \"a complete pitch --out” of voters.
On the contrary, May proposed that Britain could
The EU imports on behalf of the EU, and her own foreign minister, Boris Johnson, thinks the idea is \"crazy\" and says it will be too bureaucratic, will still limit Britain\'s ability to trade outside the EU.
Johnson and other vacation activists are in favor of a plan that will ease the need for border checks by using the \"trusted trader\" registration program and camera technology, they said.
EU officials see neither idea as viable, and many manufacturers are worried that there is no customs agreement at all, putting the supply chain they rely on at serious risk.
In April, Airbus chief executive Tom Enders said Britain must recognize that future UK investments in the country are \"not specific\" because of the lack of clarity on long-term UK investments.
Long-term trade relations with the EU.
ADS\'s Kakkad said it welcomed London and Brussels to reach an agreement by the end of 2020 to keep trade relations unchanged, as the UK intends to stay with the European Aviation Safety Agency, which may help avoid differences in rules.
But he said the company does not expect a smooth transition, as it depends on the broader agreement reached in the coming months.
Supporters of Britain\'s exit from the EU have long argued that Britain\'s share of exports to the EU has declined --
From 54% in 2000 to 43% in 2016
This shows why it has to prioritize trade deals with countries like India, China or the US.
But kakard says bilateral trade deals are not important, at least for aviation.
According to agreements reached in more than 50 countries, most civilian aircraft components do not impose tariffs, and the global industry follows increasingly coordinated standards, he said.
Like other British manufacturers, what is more important to them is the growing importance of the EU in its supply chain.
The UK\'s supply chain of goods or services exported to the European Union, which has risen to 61% in 2000, estimates from the Institute of Finance think tank.
More than half of EU exports to the UK are similarly classified as intermediate inputs, IFS said.
Of course, Brexit has some benefits for UK companies.
Ridyard said the devaluation of the pound helped Produmax\'s sales overseas, raising additional cash for increased automation investment.
A survey by manufacturing firm EEF found that more British companies are planning to ship production back to the UK from the EU rather than investing in the EU.
In aviation, Brexit prompted British companies to try to win more business from Boeing. (BA. N)and its big U. S.
To hedge against the risk of loss of business in the EU.
But employers say the biggest problem for British companies in the fight for EU jobs is uncertainty.
A survey of supply chain managers released by the UK chartered procurement and supply Institute in March 2019 showed that among the four UK companies with suppliers in the EU, nearly one is trying to beat Britain\'s exit from the EU.
To avoid possible obstacles to working in the EU, ridiyad is looking into the UK\'s oil and gas industry.
The project development manager of Produmax recently attended an oil sector event in Aberdeen and brought back potential leads.
But unlike airlines whose contracts can last for 10 years, oil and gas jobs tend to be short-lived --
The outlook for the industry is not very optimistic.
By contrast, Boeing believes that the market value of passenger and cargo aircraft will reach $6 trillion in the next 20 years.
\"As a country, it is disappointing not to be fully involved,\" said Ridyard . \".
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