TAIPEI, Taiwan - March 23, 2018 - (Newswire.com)
According to a recent survey by Fraser Hammond, as many as one in seven EU companies with offices in the UK have relocated parts of their business out of the country. Fraser Hammond economists believe concerns over post-Brexit disruption and trade-related uncertainty are the reasons for the relocations.
Fourteen percent of EU businesses with a presence in the UK have reduced their British-based operations with a further eleven percent of companies relocating a portion of their labor force out of the country since the Brexit referendum in June 2016.
The survey was conducted before the announcement of this week’s transition period agreement. Fraser Hammond economists say that, under the terms of the transition deal, Britain’s access to European Union markets will remain the same until the end of 2020.
Fraser Hammond economists say that EU companies are more concerned about the uncertainty surrounding the future relationship between the UK and the EU over the long term.
The survey also revealed that 25 percent of UK firms with EU-based suppliers are struggling to ink contracts that extend past the UK’s scheduled exit from the EU in just over a year from now. Many UK supply chain managers are seeking other suppliers outside of the UK and the EU.
Up to 33 percent of companies reported having to increase their prices because of the effects of Brexit which caused the pound to devalue sharply in June 2016 and in turn pushed up the price of imports.
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Press Release Service by Newswire.com
Original Source: Fraser Hammond - EU Companies Pull Out of UK
