It’s been one year since the UK officially left the European Union (EU) and began looking for new countries to trade with. This week, ADS took the time to explore some of the key impacts and ongoing issues related to the UK-EU Trade and Cooperation Agreement (TCA).
Speakers on the webinar included Christopher Burns, Senior Policy Advisor, Aerospace from the Department of Business, Energy and Industrial Strategy (BEIS); Jonathan Hawkings, Director of Policy, Aimie Stone, Senior Economist, and Andy Philips, Aerospace Policy Adviser all of ADS.
One Year On
To open, Jonathan provided an overview of the current political climate and some of the key impacts members had reported from the new arrangements with the EU, such as new customs systems, regulations, and aviation safety requirements.
Northern Ireland Protocol
One year on, there are still some tensions and conversations continue between both sides on improving the Northern Ireland Protocol following papers published by both sides in 2021.
It’s worth noting that Liz Truss, UK Secretary of State for Foreign, Commonwealth and Development Affairs is meeting with her EU counterpart on 24th January to discuss progress and ADS will keep members informed of any relevant developments.
Policy Impacts
Christopher Burns from BEIS noted that there have been several policy impacts for the sectors, commenting on the Civil Aviation Authority (CAA), Horizon Europe and UK access to research and development subsidies as examples. Teams across Government are focused on ensuring the UK does not miss out and is able to function prosperously as global Britain.
Aerospace Policy Advisor Andy Philips gave an update that ADS continues to engage with Government on the importance of negotiating a maintenance annex to support UK aerospace industry.
Impact on ADS Members
The agreement has been phased in over the last year but there has still been significant impacts on ADS members further exacerbated by the COVID-19 pandemic. SMEs, who make up 95 per cent of ADS membership, have faced higher trading costs and new regulations to comply with.
Despite the higher costs, there have been few reports of major disruption, but Chris Burns stated the Government is aware that organisations continue to struggle with individual issues due to complex trading regulations. A useful way for ADS members to be aware of changes is to keep up to date with the ADS Brexit Hub and blogs which we update regularly with changes to government approach.
Advice to ADS Members
Throughout the webinar, the speakers were keen to engage with ADS members who may still be adjusting to the TCA and this includes working with HMRC where possible, and helping businesses ensure they are compliant when trading goods and putting goods on the market.
Looking Ahead
2022 is well underway and our senior economist Aimie Stone reflected on couple of issues that ADS is currently watching and ready to support members on if they develop further. These are:
- General supply chain disruptions.
- Impacts of global and local lockdowns on demand and supply.
- Long-term labour shortages of HGV drivers slowing supply chain.
- Rising energy prices caused by the weather and resurgence in demand.
Support for ADS Members
If you need any support regarding the issues raised in the webinar, check out our ADS Brexit Hub for the latest updates on GOV.UK.
