export-controls 28 February 2019

‘Disruption inevitable consequence of no-deal BREXIT’: WorldECR survey

A WorldECR survey suggests that the prospect of a no-deal Brexit is already filling the European trade compliance world with a degree of trepidation. WorldECR polled the views of 50 of its UK/European readers asking them for their views on a range of Brexit-related issues. Amongst our findings are:

  • Of those who responded, all predict some degree of disruption to supply chains involving dual-use or military goods.
  • Companies in the controlled goods sector have already begun contingency planning for a no-deal Brexit.
  • Over half of respondents (57%) agree that in the event of a no-deal Brexit it will be necessary for companies in the controlled goods supply chain to move some operations out of the United Kingdom.
  • All respondents believe that export compliance will become more burdensome for UK companies. 75% believe the same for EU companies.

On the positive side, more respondents believe that the UK government has given clear advice about export controls in the event of a no-deal Brexit than those who think that it hasn’t.

The survey also suggests that if the UK government is able to agree ‘a deal’ with the European Union, disruption, to both dual-use and military supply chains, will be minimal.