On 31st January, Britain left the European Union but not a lot will change until the end of the year as we are now in a transition period. This means that the UK will effectively remain in the EU’s customs union and single market – but will be outside of the political institutions.
So no change in how we trade with our European suppliers or how you will do business – yet.
Experts are backing up our view that there will not be too many discernible changes in the short term but now we are free from our commitments to the EU, we can start negotiating trade relationships with other countries. This will allow new products to enter Britain or some of our favourites at what could be far lower prices. The world wants to trade with Britain and have promised some great deals, which now need to be secured. There are opportunities for our exporters too – Britain is perceived to make and grow high quality, premium products that are in high demand by markets such as the USA and China. All this could weigh heavily in our favour as trade talks start.
Any impact on prices this year is likely to be caused by the world’s unpredictable weather patterns that last year impacted growing conditions, and of course, the strength of the pound against the Euro and the US Dollar. Remember that the currency markets offer an ongoing commentary on what is happening politically and economically and as Britain embarks on trade talks over the next six months, the ForEx markets will show their opinion on progress. However, the current prediction is that the GBP will continue strengthening against the Euro and will maintain its current high against the US Dollar, at least over the first half of the year.
Think of the transition as a time to get prepared for what happens next
Now is the perfect time to review your purchasing. By having a clear understanding of your key products and how they are sourced, you can ensure smooth supply routes for the rest of the year and into the future. We can also agree alternative ingredients should the market indicate any supply issues. The UK government has ruled out any form of extension to the transition period so if a trade deal isn’t agreed and ratified by the end of the year, we could be facing tariffs – and higher prices – so it makes business sense to be prepared.
Throughout the transition, My Purchasing Partner continues to buy smartly
We are negotiating hard to ensure that you benefit from the best possible prices at all times. Whatever happens, we will continue to keep you abreast of all developments and will explain how they impact your purchasing choices.
In the meantime, if you have any questions, feel free to call us on 0800 121 6440 or e-mail info@mypurchasingpartner.co.uk.
