Departure from the European Union (EU) without a free trade arrangement and managed transition period is not the preferred outcome of British multinational clothing, footwear and home products retailer Next Plc. However, the Enderby-based company is well prepared for this eventuality and has all required framework in place to ensure smooth operations.

In terms of costs there would be some additional administrative costs but, in the scheme of the group, ‘these will be de-minimis’, the company said.

The company also welcome the government’s decision to implement a temporary tariff regime, replicate generalised system of preferences (GSP) arrangements and, where possible, grandfather the EU’s existing free trade agreements.

These arrangements remove the risk of higher duty costs for the business, at least in the short term, the company feels. There would, of course, be duties to pay on imports from the EU. However, the net cost to the UK economy of these tariffs will entirely depend on what tariff rates the government would adopt in the longer term post a no-deal Brexit, it said.

The biggest risk in the long term to its business is the external risk of UK ports not coping with the additional volume of customs work they would be required to undertake if no changes are made to the UK’s current procedures, the company added. (DS)

Fibre2Fashion News Desk – India

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