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eino Unido currently ranks as the leading investor in Spain, with more than five billion euros placed during 2019, and bilateral trade between both countries is estimated to exceed 60 billion euros. These figures give an idea of the importance of border management for the logistics sector. The next key date will be October 15, when the European Council meets to discuss the terms of the British country's withdrawal agreement.
Meanwhile, during the round table "Brexit: repercussions and strategies in the logistics sector," the Manager of Foreign Trade, Customs and Special Taxes at KPMG Abogados, Xavier Just, warned that the sector is facing a "paradigm shift" that will create new procedures for transporters. This will have a direct impact on critical sectors such as food, medicines, and automotive components, perishable cargo for which new controls, which could generate delays of up to two days, can mean the loss of merchandise.
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For his part, the president of the Association of International Freight Forwarders and the Organization for Logistics, Transport and Customs Representation (ATEIA-OLTA Barcelona), Emili Sanz, assured that during the first months "the situation will be chaotic" and "consumption will slow down." However, he expressed his conviction that "before a year, the levels" prior to Brexit "will recover."
In any case, both agreed that the logistics sector is immersed in a situation of "uncertainty" regarding adaptation to the new taxes and tariffs that will be created at the border. Both Just and Sanz assured that the challenge for European and British administrations is to create customs that can manage the increase in bureaucracy, as it is estimated that from 2021, 250 million more customs declarations will be made.
They also expressed their preference for the EU and the United Kingdom to reach a "preferential agreement" by which tariffs on traded goods would be reduced or eliminated. This would allow mitigating the "tariff impact" of the new borders, thus giving a respite to exporting companies.