'Delivery of some products and services may cease completely' in no-deal Brexit, says expert

While access to medicines should remain unchanged, 'there may be a temporary impact on supply'.

A Cork-based Brexit expert has warned consumers and small businesses to prepare for “the delivery of some products and services to cease altogether” in the wake of a no-deal between the UK and the EU.

Mike McGrath of procurement consultancy firm Arvo, who has spent three years delivering Brexit analyses for businesses at roadshows around the country, said he had received a “deluge of queries” in recent days for worried SMEs as a no-deal looms.

“It has been a very challenging year already for SMEs, so the timing of Brexit could not be coming at a worse time. Amazingly, the details of the future EU-UK trading relationship are still unknown with just over 100 days to go. From Arvo's perspective, there are many potential supply-chain risks such as regulatory divergence, customs and tariffs, immigration, and the fallout from implementing the specifics of the Northern Ireland Protocol,” he said.

In layperson's terms, that means consumers and small businesses having to adjust extra costs into purchasing goods and services that have been taken for granted over the past few decades, he said.

“We have always been more concerned for businesses about the divergence of EU standards and regulations in the UK/NI, as tariffs on goods will only lead to cost increases, and shortage of certain products in the worst-case scenario. However, the lack of alignment of non-tariff barriers will cease the delivery of some products and services altogether,” Mr McGrath said.

The introduction of a UKCA mark instead of the CE mark would also be significant, he has.

The CE symbol applied to products to indicate that they conform with relevant EU directives regarding health and safety or environmental protection.

According to the British Government website, the UKCA mark will be used for goods being placed on the market in England, Wales and Scotland. It covers “most goods which previously required the CE marking”, the website advises.

In the event of no-deal, an EU resident buying goods online, which have to be imported from the UK, will have to pay import duty and other indirect taxes such as Vat.

All goods imported from the UK to the EU will also be subject to customs checks, including the application of prohibition and restriction measures.

After the withdrawal date, EU law on out-of-court dispute resolution and online dispute resolution will no longer apply to the UK, meaning consumers will no longer be able to use the EU online dispute resolution platform to settle disputes with traders established in the UK.

The EU says that, in principle, access to medicines should remain unchanged.

“However, even the best preparation cannot fully exclude the possibility that there might be a temporary impact on the supply of some medicines,” it said.

There will also be consequences for motorists who wish to import second-hand cars from Britain, a practice that has become increasingly popular in recent years, especially for high-end cars like Mercedes, BMW, Audi and Volvo.