Brexit: the UK's exit from the European Union and opportunities for Brazilian exports
At the end of 2020, after months of intense negotiations and uncertainties, the United Kingdom and the European Union closed a trade agreement, replacing the trade rules previously in force between the two parties and ending the transition period after Brexit. Thus, since January 1, 2021, the United Kingdom officially no longer belongs to the economic bloc.
New tariff advantages for Brazil
From the same date, the country started to adopt the UK Global Tariff, that is, its first autonomous tariff regime in almost 50 years. As a result, new import tariffs were established for partners who, like Brazil, do not have preferential trade agreements. With this new regime, various products will have their tariffs reduced or even eliminated, which, according to Apex Brasil, will promote opportunities for Brazilian exporters from the most diverse niches.
Among the sectors of the Brazilian market that will benefit from this tariff reduction, the following stand out, according to Apex Brasil: fashion, personal care, cosmetics, transport equipment, chemical products, among others. Also, according to the same source, it is estimated that the reduction in tariff charges could correspond to US$ 12 million.
Increased export opportunities for Brazilian businessmen
Furthermore, according to BBC News Brasil, the United Kingdom imports almost all of the agricultural products it consumes, therefore, it is a sector that will not face protectionist barriers, which may appear as a great insertion opportunity for Brazilian producers. According to a study carried out by the Confederation of Agriculture and Livestock of Brazil (CNA), 563 agribusiness products will have their tariffs reduced, and the amount of liberalized trade with Brazil is equivalent to US$ 533 million. Among the products whose Brazilian participation in British imports is already expressive, lemons stand out, with a reduction of almost 14% in taxes, in addition to wines and essential oils, which had their tariffs zeroed.
The United Kingdom is characterized as the 5th largest economy in the world, in addition to being the 15th main destination for Brazilian exports and, although part of the impacts of Brexit are not yet fully predictable, the country's exit from the European bloc may produce an expansion of opportunities for Brazilian businessmen, both those who already export to the United Kingdom, and those aiming to enter this market.
The importance of internationalization consultancy for the UK
Thus, the performance of an international consultancy, such as Prisma, is shown to be fundamental for the construction of an effective export strategy for the United Kingdom, in order to map the best opportunities that will arise in the country and, above all, to circumvent the possible uncertainties that this new political and economic situation in the United Kingdom can generate for Brazilian businessmen.
By Giovanna Relva on 02/02/2021