Lipinski Stole My Catchphrase
It is no longer possible for Debenhams to deliver orders to the Republic of Ireland "due to uncertainty around post-Brexit trade rules".
Goods will be now be subject to a tariff when entering the UK and then again when entering the EU," explains Sam Lowe from the Centre for European Reform.
The new tariff rules won’t affect shop prices in the UK but it will become more costly for UK retailers to provide goods to EU-based consumers and prices may rise accordingly.
Alternatively, retailers could decide to scale down their UK distribution network and scale up their operations in the EU. This is likely to have implications for jobs.
"I’m surprised that retailers are surprised by this," Lowe says.
"This was not a deal dependent issue, there was never going to be a solution to this. Rules of Origin were always unlikely to accommodate the re-export of goods from China".
Retailers have asked the government to try to amend the Rules of Origin covering countries that are not part of the Customs Union set out in the trade deal.
“It is appears that the UK government did not realise what they had negotiated,” one retail executive told me.