Europe’s small companies are calling for a transition interval of three months after Brexit

Originally written by Timothy Adler about small business

Companies need a transition period of at least three months for new regulation, even if a Brexit deal has been agreed, say European small businesses.

SMEunited, the organization representing small businesses at the EU level, says businesses need a gradual introduction to trading with the UK after the EU.

To give SMEs the necessary preparation time for new customs regulations, transport requirements, phytosanitary tests and more, a gradual three-month transition is required, according to SMEunited. Otherwise, the new conditions will have a serious impact on SMEs on both sides of the Channel.

> See also: How Brexit will affect your company – Import No. 1

SMEunited warned many SMEs not to adapt to the changing status of EU-UK relations. SMEunited has encouraged its members to inform SMEs about changes in trade conditions between the EU and the UK such as new customs regulations and transport requirements.

Craig Beaumont, chief of foreign affairs for the Federation of Small Businesses, said: “Some border controls and payment rules have already been postponed until July, but small businesses will need time to become familiar with the new requirements. We have asked the government to gradually introduce new trade rules into the most complex areas such as rules of origin. “

Jonathan Geldart, Director General of the Institute of Directors added, “Business leaders want to start this new chapter at the front foot without finding their way in the middle of a pandemic. To fully reap the benefits post-Brexit, Directors must be able to minimize and manage the risks ahead. This is why the IoD has long advocated the need for a real phase of implementation. Allowing the time between the agreement and the changes coming into effect gives the directors better planning. “

> See also: How Brexit Will Affect Your Business – Export # 2

However, almost half of the UK micro-businesses surveyed this week said Brexit will have no impact on them at all.

And almost half of UK SMEs have already reviewed new regulations due January 1, 2021 and made changes to ensure their businesses comply. This emerges from a report by the SME bank app Amaiz.

Overall, six in ten small businesses believe Brexit will have a negative impact on their business, and 7 percent believe it will destroy their businesses completely.

But almost two-thirds of the 500 small businesses surveyed see the Covid-19 pandemic as far more worrying than Brexit.

further reading

The government is planning an ongoing state-sponsored small business loan program

Europe’s small businesses are calling for a transition period of three months after Brexit

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