Officials of the Ministry of International Trade encouraged British companies to establish separate companies within the European Union's single market, to avoid tariffs and value-added tax resulting from Britain's exit from the European Union in early January, and to enjoy greater freedom in the distribution of goods.
A report by author Toby Helm published in the British newspaper "The Guardian" quoted two of the heads of British companies suffering from the problems of Brexit from the European Union that they had taken a decision to register new companies in Europe, and they are not the only ones, as many companies are still Others are hesitant about this move.
The report stated that Andrew Moss - who runs Horizon for retail marketing solutions based in Cambridge - is determined to register one of the company’s branches in the Netherlands within the next few weeks, pursuant to the advice of a government advisor. This means dispensing with some local employees. For employment in the Netherlands.
Referring to the government's advisor's advice, Moss said it turned out that Britain’s secession was not about regaining control from the European Union, but investing in it to survive.
For his part, Geoffrey Bates, general manager of the British company, Stewart Superior, believes that the free trade guaranteed by the government was not free at all.
He added that the problems of value-added tax, new duties on transporting goods, and the increase in bureaucratic procedures exacerbate the "administrative nightmare."
Negative repercussions
According to the same report, by transferring commercial operations to the European Union, and then sending large shipments from the United Kingdom to the new European headquarters, companies will not only avoid delays and additional costs for each shipment they send, but they can also get rid of the VAT burden they face. She and her European clients.
The report says that the government's aspirations in "global Britain" were subjected to another shock following the country's exit from the European Union, as the chances of an urgent trade deal between the United Kingdom and the United States appear to be diminishing, after President Joe Biden's candidate for the position of Treasury Secretary has been clarified. Janet Yellen has more pressing domestic economic priorities than international trade deals.
It is noteworthy that the US Senate Finance Committee unanimously approved the appointment of Janet as Secretary of the Treasury, to become the first woman to hold this portfolio.
The approval of the Finance Committee indicates that Yellen will easily win the approval of the full Senate.
In light of the crisis, Rachel Reeves, a shadow counselor in the Duchy of Lancaster - said the report - expressed her regret, saying, "We are witnessing once again manifestations of government inefficiency and poor planning, which have hindered British companies and slowed our economic recovery. This issue must be brought under control immediately."