U.K. businesses relying on 1.2 billion pounds ($1.6 billion) worth of goods crossing the border were taking no chances ahead of exit from the European Union on Thursday, reports Bloomberg. Ports were clear of truck backups, while goods moved smoothly as grocery-store shelves remained well-stocked as companies prepared for post-exit woes.
- The Brexit test comes at a time when France expectantly closed its borders for two days last week on a new COVID-19 outbreak in the U.K, causing delays at the Port of Dover.
- Analysts believe that with the New Year arriving on a long weekend, it will allow the port and its users to ease into the new reality of a customs regime at the formerly open border.
- Richard Ballantyne, the head of the British Ports Association, expects the Dover Port to remain quiet for at least the first few days.
- It is yet to be seen how Britain’s departure from the single European market will affect trade with threats of a free flow of goods and cost increases for importers and exporters expected.
- On Wednesday, the U.K. government extended a trade-credit insurance program that protects sellers against non-payment, a measure that will support the supply chain.
U.K stocks are currently declining as the pound gains. FTSE 100 is down 1.45%, GBPUSD is up 0.23%
