Politics

Take that, Brussels! UK businesses exploit Brexit loophole to swerve hated EU red tape

Brexit: UK 'can be a global trading nation without EU' says MP

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Firms are now turning to borderless businesses solutions in order to take advantage of global opportunities without being impacted by the usual bureaucracy involved in international trade. Imaginative entrepreneurs have been able to “go local” in new markets, such as Japan, China, the US and Europe, by teaming up with foreign service providers. Yorkshire-based Megapaws saw its business boom during lockdown as families around the world turned to online firms for their purchases.

Owner Marcus Richardson has shipped customised gifts featuring family pets across the globe by thinking outside of the box.

Instead of opting for a fixed domestic factory to produce his wares, Mr Richardson has used an international network of printers to deliver goods.

The ingenious solution has helped him avoid mountains of paperwork, costly shipping and customs fees that some businesses have complained about in the wake of Brexit.

Mr Richardson said: “None of our works ever get stuck in transit or at a dock or port.

“It’s been such a buzz waking up and seeing an order from a place in Colombia or Norway and knowing our work will appear in their home by the end of the week.”

Henrik Muller-Hansen, CEO of Gelato, which offers borderless business solutions, wants to help British firms prosper outside of the EU.

He said: “Fuelled by the rise of global e-commerce platforms, success stories like these now surface all across our planet.”

The solution has also been hailed as a win for the environment with less distance for the final product to be shipped. 

It was said to drastically cut the levels of carbon emissions often associated with doing business abroad.

The reduction can help firms outcompete the likes of Amazon, which produces more than 210 million kilograms of plastic waste each year, when it comes to green credentials.

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Mr Muller-Hansen added: “With local and domestic production we also reduce delivery times, carbon emission and shipping costs since customers order on-demand and delivery distances are shortened.”

Critics of Brexit often complain that traditional business, which produce goods in the UK, have struggled to ship to Europe as a result of Britain’s departure from the single market and customs union.

But according to the Office for National Statistics, 101,400 new businesses launched in the final three months of 2020, up from 81,795 during the same period in 2019.

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Britain finally ended its transition out of the EU on December 31 after more than 40 years of membership.

Since our departure from the single market and customs union, new procedures have been introduced on shipments between the UK and EU.

But the use of overseas firms, like Megapaw’s partnership with Gelato, has enabled them to avoid the burden of red tape.

Instead the firm uses local printers to produce their wares, avoiding red tape, costly shipping fees and time.

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