The joys, not the burdens
The British are and will remain headstrong. They were so even before the European Union came into being, while they had numerous exemption rules during their membership of the EU. And even after they leave, they will remain contrarian. Tell a Brit that we are all going to drive on the right and you basically already know that they prefer to cruise on the left side of the road.
Back in the summer of 2016, Britons opted for a Brexit in a referendum. Since then, they have been trying to sell their skin as dearly as possible towards the European Union. Now - more than four years, the official divorce (in January 2020) and a corona crisis later - they are finding out that they are more or less isolated on an island live and that they now have to negotiate with a greater power. Alone. In doing so, the British want continue to enjoy all advantages and benefits offered by the EU. But bearing the burden? No, thank you.
Impact on Britons
So the long negotiations have been going on for years. The United Kingdom (UK) still has until 1 January 2021 to reach a final trade agreement with the EU. As there is still a lot to be done for that, the EU would prefer to have everything negotiated out by 31 October. A no-deal-Brexit, in which there will therefore be no special trade agreement between the EU and the UK, comes ever closer. Despite some flexibility from the EU, Boris Johnson and his government persist in their positions, which the EU does not want to comply with.
For now, the whole process has notably major adverse consequences for Britain itself had. Those consequences will only worsen in the event of a no-deal Brexit. International companies are already leaving the UK en masse to mainland Europe. The unemployment rises sharply, while it number of bankruptcies has been significantly higher than the average in Europe for some time. It is also pound depreciated and economy shrinks by as much as 20%. The situation around Covid-19 has compounded all this.
Substantial impact on Dutch companies
Should it actually come to a no-deal Brexit, this has irrevocable impact on Dutch economy. To a large extent, exports of Dutch products depend on Britain. This means that companies that export a lot to Britain have to reckon with a drop in sales to this country. It will simply take more time, energy and money to export to Britain.
A higher risk profile among customers in the UK. Therefore, we urge you to properly test new UK buyers for creditworthiness, monitor existing UK customers for creditworthiness and insure your own buyers against bankruptcy risk. In recent years, numerous UK companies have already taken out credit insurance for their domestic customers. Are you an exporter to the UK? If so, we strongly recommend hedging your debtor risks. Because the Brexit may be a never-ending story are, trade with the British could just as well suddenly end...
