The start of 2024 presents a complex scenario for the UK’s alcohol imports. New UK-EU regulations intertwine with unexpected Panama Canal delays, raising concerns about potential shortages in the UK market, particularly of wines.
Grape Escape: The UK-EU Regulatory Puzzle
The Institute of Export & International Trade (IOE&IT) sounds the alarm over the upcoming implementation of the Border Target Operating Model (BTOM) on January 31, 2024. This model mandates checks on specific EU imports, including food and drink products, marking a significant shift since Brexit.
As the world’s second-largest wine importer, the UK mainly sources its wine from France, Italy, and Spain, totaling an import value close to $2.94 billion. Yet, the BTOM rules threaten this flow, echoing difficulties British winemakers faced in exporting to the EU post-Brexit due to increased customs checks.
Panama Problems: Supply Chain Disruption
Further compounding the situation, the IOE&IT points to ongoing issues at the Panama Canal. Drought conditions there affect global shipping routes, crucial for transporting popular wines like Californian Chardonnay and Chilean Merlot to the UK.
EU businesses preparing to face stringent customs controls and adapt to the new Customs Declaration System (CDS) might struggle with timely demand fulfillment. This could lead to noticeable delays in restocking alcohol supplies in UK supermarkets.
The IOE&IT Perspective: Bracing for Change
Marco Forgione, director general at IOE&IT, expresses concerns about the timing of these challenges. Demand spikes during the festive season coincide with Panama Canal delays and precede new EU trade rules, potentially leading to significant supply disruptions.
Forgione highlights the necessity of preparing UK and EU businesses for these shifts. He notes that 2024 is a crucial year, with over 20 major new trade measures expected to simplify and enhance international trade. Yet, comprehensive education and support are critical to ensure smooth transitions.
To assist businesses, the IOE&IT has released a whitepaper detailing upcoming policy changes and developed online questionnaires to help businesses navigate these new trading landscapes.
As the UK prepares for these multifaceted changes, proactive measures and increased awareness are key to mitigating potential impacts on the availability of popular beverages in the British market.
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