23008_Nearshoring Report

UNITED KINGDOM

• As a result, UK businesses are now seeking to source more products from suppliers within the UK , rather than importing from Europe. This represents opportunities for businesses looking to supply the UK to locate within the country. • With regard to moving goods as exports from the UK, the potential risk of “double dutying” has led the UK government to alleviate concerns with the implementation of freeports - areas designated with tariff-free status until goods leave the specific zones. Interest in locating in freeports seems to be growing but is still in early days.

• As a result of leaving the EU, the UK has somewhat unique drivers related to trade and nearshoring. The new arrangements for trade in goods across the UK-EU border comprise a comprehensive free-trade agreement but do not fully replace the near-frictionless processes pre-Brexit. UK businesses have found that importing goods from the EU comes with more complexity, time and cost.

• However, the UK will face challenges in convincing businesses considering setting up new operations in the UK to serve Europe in the post-Brexit environment. The new challenges to moving goods across the new UK-EU border attract complexity, limitations and cost and this is translating into lost opportunities for the UK.

• Key to the UK’s success post-Brexit will be the UK Government’s position and policies with regard to attracting and stimulating investment on its shores. To date, there is still more to for the government to do to put the UK in the same frame as the EU and US.

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