Brexit: Potential Implications For The Maritime Sector
While the nature of the United Kingdom’s future trading relationship with the European Union (EU) will take some time to become clear, it is important to realise that in the immediate aftermath of the result of the UK’s recent EU referendum, says a report from Watson, Farley and Williams.
Nothing has changed in terms of the trading relationship and the movement of people and goods between the EU and the UK and the laws which apply to your maritime business and contractual arrangements.
As the political machinations play out, it is clear that Article 50 will not be invoked until a new Prime Minister is in place, which will not be until at least September.
Once invoked, the UK has an extendable period of two years to negotiate new trade arrangements with the EU. During this negotiating period the UK remains a full member of the EU and subject to all the related rules and regulations.
While trade relationships of various forms between the UK and EU have been suggested as possibilities by different people, organisations and publications, ultimately it is difficult at this stage to know what form that relationship will take, or to be able to advise in detail on the full potential impact of a Brexit from the EU for the maritime sector.
The extent to which changes resulting from Brexit will impact the shipping industry will depend heavily on the relationship of individual companies with the UK and the EU and, ultimately, as for all sectors, where the discussions between the UK and the other EU member states finally come out on the key issues of free movement and access to the Single Market.
It is, at present, “business as usual” and, as the maritime industry is a global, predominantly US dollar industry many may not directly feel the impact of Brexit. We will be watching developments closely to determine how they will affect our clients.
