EU and UK companies have benefited from over 40 years of economic stability, integration and over 25 years of the Single Market. As a consequence, value chains have become so closely interlinked, a no-deal BREXIT could have major consequences.
Depending on the type of future relationship, Brexit could prove to bear a significant cost for businesses. The Withdrawal Treaty foresees a single customs territory including all of the UK, but internal UK divisions on the ‘backstop’ insurance policy provisions designed to maintain a soft border and peace in Northern Ireland has produced a stalemate.
BREXIT is now set for a deadline end of October 2019. As with the past negotiations, Fertilizers Europe continues to intervene with the European Commission negotiators to argue for the ‘closest possible cooperation’.
However, it has emerged from the hard BREXIT crash-out contingency scenario that the UK would apply a 6.5% ad valorem border tariff on EU ammonium nitrate and NPK, which would be of serious concern to the industry.