Brexit Transition Extension 'Increasingly Likely' Due to COVID-19 Pandemic, UK Cargo Group Says

An extension of the Brexit transition period beyond the end of 2020 looks “increasingly likely,” despite United Kingdom Prime Minister Boris Johnson’s promises to the contrary, the British International Freight Association said in an April 22 press release. “We believe that refusing to even consider extending the transition period is very risky and together with a growing chorus of Brexit commentators, think an extension to the transition period remains likely, and it is really only a question of ‘when,’” director general Robert Keen said.

“Trade deals are typically multi-year exercises, but in this case, the UK and EU realistically have until October to agree on terms, allowing time for ratification,” Keen said. “And while formal talks are continuing, many of the civil service resources previously assigned to support negotiations have been reallocated to deal with the coronavirus emergency response.” The U.K. and the EU only have until October to reach an agreement if it is to be ratified by the Dec. 31 deadline, and things could be complicated even further if there’s another COVID-19 outbreak to close out the year, he said.

“Our understanding is that there has been very little progress to date on key negotiating points,” Keen said. “There has been little meaningful consultation with UK trade regarding the policies and procedures required in order to ensure that trade with the EU can continue relatively uninterrupted post December 31st 2020.” Meanwhile, the COVID-19 pandemic has “knocked sideways” U.K. companies, making it difficult to prepare for the end of the transition period and unlikely that “companies and the clients they serve will have the capacity to increase readiness for a sharp change in trading conditions in 2021,” he said.