The latest stage of Brexit negotiation has been taking place this week and the Freight Transport Association, FTA, has been welcomed the proposal made public by Theresa May for a two-year transition period. The negotiations have been taking place in Brussels, but in Florence, the Prime Minister called for a transition period as an important part of the ongoing negotiations.
The FTA feel that the call by Theresa May has is he right move, as the association has been lobbying for such a period since Article 50 was first triggered. Having a transition will be beneficial for companies to be able to prepare the necessary systems and processes in order to ensure that trade after Britain leaves the European Union can continue smoothly.
The speech made in Florence by Prime Minister Theresa May demonstrated an understanding of the complexities of the trading relationships as well as the trading relationships and processes that will need to be agreed upon and implemented post-Brexit. The transitional period will allow enough time for negotiations to take place and a new trade agreement to be agreed upon. This period will also allow for authorities and businesses to adapt to the change. If the transition is put into place in 2019, it will be a huge relief for the logistics industry which is charged with making sure that trade continues after Brexit.
In order to make sure that there are frictionless borders for trade, the government appear to have finally acknowledged the challenges involved. And with Europe including the Republic of Ireland, so it will be a relief for a large number of FTA members that some form of transition period has been requested. Going forward it is vital that the intentions already put forward by Theresa May are carried out and turn into concrete decisions and actions. Customers will also need to be reassured that vehicles and planes can keep operating across borders and supply chains after Brexit.