Commentary of Brexit impact on Digital Economy

While things remain uncertain politically in the UK, the practical impact of Brexit essentially reverts several key business operations from the EU to foreign operations.

Specifically, companies most impacted need to focus on their supply chain distribution, product and packaging compliance and important issues of human resources and Office locations that may have EU and UK staff in remote offices who now need to apply for licenses to work in the EU or UK.

With the imminent rush at the borders between UK and EU an agile approach with company IT systems to process product labeling, licenses to ell and passing UK and EU Border inspections will need to “test run” across their transport, staff movement, and product compliance activities. The EU has already balked at the idea of a digital border so it is trying to work efficiently as possible with these access rules that hitherto where frictionless as an EU member state.

Looking at the wider issues of market access and growth of of UK business in the EU market will incur additional costs now because of these reintroduced overheads. Diversifying risk to other non-EU markets as well as working harder to retain price competition in selling within the EU will become a pressing issue in the coming years which economically whether this translates to more market share for the UK and being able to negotiate with all member states seems problematic that medium-term assuming 31 Oct is a reality will mean UK seeking retrograde inclusions that may result in little difference from todays EU membership but without voting rights.

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