Leaving EU - Business problems

Leaving EU - Business problems

Author
Discussion

NM2016

Original Poster:

14 posts

96 months

Friday 20th May 2016
quotequote all
Apologies if I come across a little naive here but here is where I stand.
At the moment I import goods from with in the EU and sell them within the UK but occasionally further afield.

I do not use the UK distributor for my products, in fact I use another distributor and dealers in other EU countries. reason being is better pricing and less restrictions when it comes to pricing. I understand this is frustrating for the UK disty but at the end of the day I make a good living and there is nothing they can do about it with us all being in the EU, it is of course free trade and I am taking advantage of it. This has been going on years and I think we have come to the point where they are over it.

If we leave the EU i understand there will be some agreements when it comes to free trade but will this cover me and will it be for every country in the EU or a select few who we can negotiate with?

I am worried we come out of the EU and the UK disty can then take legal action against me to stop importation of these products. if so is there any solution?

Thanks in advance, this has been a slight worry for a while now and although I have researched it I can not find anything specific.
Also apologies if this is in the wrong category, I wasn't sure if it was business or politics specific.

Ean218

1,959 posts

249 months

Friday 20th May 2016
quotequote all
The one, and only, thing that everyone, remain or leave, agrees on is that free trade is a good thing.

We were sold the Common Market back in the 70s because that is what we wanted. That it has now morphed into an evil EU empire is the thing that leavers object to, not the common market as such, so that is the one area where it is very unlikely that the present arrangements will be messed around.

It is to our advantage, but more to the point, it is even more to the rest of the EU's advantage, to leave trade as it is now.

singlecoil

33,313 posts

245 months

Friday 20th May 2016
quotequote all
Ean218 said:
It is to our advantage, but more to the point, it is even more to the rest of the EU's advantage, to leave trade as it is now.
Abso-bloomin-lutely. All this scaremongering about trade is bks from the federalists. Why on earth would a group of countries that had an imbalance of trade in their favour dream of applying restrictions to that advantageous trade?

rdjohn

6,135 posts

194 months

Friday 20th May 2016
quotequote all
Nothing happens for two years so you have time to plan.

The worst case scenario is that if no agreement can be reached, we go back to WTO rates. They are 3% and can be accommodated fairly easily within a fluctuating currency.

But, as others have said, in whose advantage is it not to reach agreement? Can you see Mrs M wanting to damage the numbers of German prestige cars that the UK buys, while also upsetting Toyota, Honda, BMW (Mini and Rolls), Tata etc.

Foliage

3,861 posts

121 months

Friday 20th May 2016
quotequote all
Business's are still going to want to make money, so they are still going to want to trade.

What the government does only affects your profits, through the taxation levied at each end and perhaps even in transit. But it will likely be you win some, you lose some, or will it.. Who knows..

NM2016

Original Poster:

14 posts

96 months

Friday 20th May 2016
quotequote all
Thanks for the advice everyone. I was a little concerned that leaving the EU would put me on dodgy ground legally and that the UK distributors could then take legal action and cause me problems.
Hopefully this stays in place for the foreseeable future and I can carry on trading as usual. If there is some lapse in the free trade agreement then I will have to look at alternative options!

fridaypassion

8,504 posts

227 months

Friday 20th May 2016
quotequote all
The biggest issue we will face on an exit situation is that the general economy here will be back in freefall. Business thrives on positivity and confidence and an exit vote will rob us of both at a critical time in the extremely thin recovery we are in at the moment.


singlecoil

33,313 posts

245 months

Friday 20th May 2016
quotequote all
fridaypassion said:
The biggest issue we will face on an exit situation is that the general economy here will be back in freefall. Business thrives on positivity and confidence and an exit vote will rob us of both at a critical time in the extremely thin recovery we are in at the moment.
If I had to guess I would say that you are probably on the Remain side of things.

Simpo Two

85,148 posts

264 months

Friday 20th May 2016
quotequote all
Indeed. Many people have forgotten how the EU has crucified British business with legislation and red tape. It's grown into us like a stealth cancer. Anyone remember our fishing industry?

sealtt

3,091 posts

157 months

Friday 20th May 2016
quotequote all
The genuine answer is that no one knows for sure, as there is no certainty as to what agreements will be made. It would be very surprising if the open borders policy remains - where any product that can be sold in one EU state can automatically be sold in another. Non EU countries like Switzerland and Norway do not benefit from the open borders for goods and services that EU countries have, you may notice that there are customs & legislative barriers to goods going between the EU and those countries.

So there is certainly a chance that a vote to leave will mean you can no longer import from the EU distributors, as the UK distributor can protect against 'grey market' imports due to leaving the EU trading block. You will lose the legal open border that currently prevents the UK distributor stopping you from buying and selling within the EU.

slow_poke

1,855 posts

233 months

Friday 20th May 2016
quotequote all
Simpo Two said:
Indeed. Many people have forgotten how the EU has crucified British business with legislation and red tape. It's grown into us like a stealth cancer. Anyone remember our fishing industry?
The one that raped and pillaged the fish stocks long before the UK joined the EEC?

Simpo Two

85,148 posts

264 months

Friday 20th May 2016
quotequote all
slow_poke said:
Simpo Two said:
Indeed. Many people have forgotten how the EU has crucified British business with legislation and red tape. It's grown into us like a stealth cancer. Anyone remember our fishing industry?
The one that raped and pillaged the fish stocks long before the UK joined the EEC?
I recall the Spanish and Icelanders were rather good at that. Our fishing grounds could support one country, but not the whole of Europe. And besides, if fish stocks need managing, what is better, to manage them ourselves or to pay foreigners to tell us how to do it?

slow_poke

1,855 posts

233 months

Friday 20th May 2016
quotequote all
Simpo Two said:
slow_poke said:
Simpo Two said:
Indeed. Many people have forgotten how the EU has crucified British business with legislation and red tape. It's grown into us like a stealth cancer. Anyone remember our fishing industry?
The one that raped and pillaged the fish stocks long before the UK joined the EEC?
Our fishing grounds could support one country, but not the whole of Europe.
But they couldn't. That was the reason behind the Cod Wars with the Icelandics - the UK fishing grounds were fished out by the the UK fleet, forcing them further afield in search of new stocks.

UK grounds fished out, by UK fishermen, in the fifties and sixties. No Johnny Foreigner in sight.

What makes anyone think it'll be any different the next time around? Why do UK fishermen think they're in line for a bonanza? It'll be a very short-lived one.

singlecoil

33,313 posts

245 months

Friday 20th May 2016
quotequote all
sealtt said:
The genuine answer is that no one knows for sure, as there is no certainty as to what agreements will be made. It would be very surprising if the open borders policy remains - where any product that can be sold in one EU state can automatically be sold in another. Non EU countries like Switzerland and Norway do not benefit from the open borders for goods and services that EU countries have, you may notice that there are customs & legislative barriers to goods going between the EU and those countries.

So there is certainly a chance that a vote to leave will mean you can no longer import from the EU distributors, as the UK distributor can protect against 'grey market' imports due to leaving the EU trading block. You will lose the legal open border that currently prevents the UK distributor stopping you from buying and selling within the EU.
I don't think so. If that really was the case, how can I buy camera equipment from Hong Kong, is HK in the EU?

sealtt

3,091 posts

157 months

Friday 20th May 2016
quotequote all
singlecoil said:
I don't think so. If that really was the case, how can I buy camera equipment from Hong Kong, is HK in the EU?
You aren't talking about importing as an end customer are you? i.e. a few units? This thread is about the impact on business, not retail buyers.

sgrimshaw

7,311 posts

249 months

Saturday 21st May 2016
quotequote all
sealtt said:
The genuine answer is that no one knows for sure, as there is no certainty as to what agreements will be made. It would be very surprising if the open borders policy remains - where any product that can be sold in one EU state can automatically be sold in another. Non EU countries like Switzerland and Norway do not benefit from the open borders for goods and services that EU countries have, you may notice that there are customs & legislative barriers to goods going between the EU and those countries.
You appear to be overlooking EFTA, it's relationship with the EU and the EEA.



Edited by sgrimshaw on Saturday 21st May 03:11

singlecoil

33,313 posts

245 months

Saturday 21st May 2016
quotequote all
sealtt said:
singlecoil said:
I don't think so. If that really was the case, how can I buy camera equipment from Hong Kong, is HK in the EU?
You aren't talking about importing as an end customer are you? i.e. a few units? This thread is about the impact on business, not retail buyers.
And the difference (in enforceable legalities) is?

bga

8,134 posts

250 months

Saturday 21st May 2016
quotequote all
Simpo Two said:
Indeed. Many people have forgotten how the EU has crucified British business with legislation and red tape. It's grown into us like a stealth cancer. Anyone remember our fishing industry?
What pieces of legislation, that would not have conceivably been generated without the EU, makes it difficult to run your business?

Among my European businesses, it is local legislation (usually tax) that has the biggest impact on our business. Taking the example of the USA - there is more red tape for small businesses than in the UK.





Edited by bga on Saturday 21st May 06:58

NM2016

Original Poster:

14 posts

96 months

Saturday 21st May 2016
quotequote all
It is the restriction with grey imports which is worrying me. My company is based solely on imports and this could soon stop.

If we do leave the EU if there any alternative I could do to get around this and carry on importing without any restrictions?

singlecoil

33,313 posts

245 months

Saturday 21st May 2016
quotequote all
Who is going to impose this restriction? And if they will be able to do so after we leave, why can't they do it now?