what's the problem? wrote:
I understand that I am supposed to think that Brexit is terrible, but I'm not 100% clear on why this is the case.
The EU is a free trade zone with a customs union and common regulations. This makes trade within the EU very easy for companies and, theoretically, should result in a greater choice of goods at better prices for the consumer. Pulling out will have a negative effect on these.
To give you a simplified example, suppose you live if Suffolk and run a company making shoes. You can sell your shoes in Suffolk, Norfolk, Essex, Kent etc without any hassle, all you need to do is find a shop to stock them. Now supposing your business is doing well and you decide to start exporting to the USA. You will suddenly be hit with a bunch of issues.
Firstly, US shoe sizes are different to the UK, your size 8 is a size 10 there, so you will have to change the marking of the size on the shoes and also on the packaging.
Secondly, you will need to get your shoes through US Customs. The US publishes a document to help you, "Importing into the United States - A Guide for Commercial Importers". It's 211 pages long and it is just the guide, the real regulations will be much longer. You will need to follow them all.
Thirdly, you will have to pay a tariff to the US government and these are not the same for all shoes, the rates for men's shoes differ to those for women's shoes. Also there is a different tariff if they are made of canvas or leather. You will need to find, and pay, the exact tariff for each type of shoe you are planning to export. As the US imports most of its shoes, tariffs amounted to nearly $3 billion a year. Interestingly, the tariff on canvas shoes is much higher than the tax on leather shoes due the intense lobbying by Converse in the last century.
After reading all that you will probably give up on the idea of entering the US market and just stick to England.
While Britain remains in the EU trade with Spain, Germany, France etc. is pretty much like trade with Norfolk, Essex, Kent etc. But if it exits it will move towards something like the requirements for trade with the USA. The softer the Brexit the more current trade controls are carried over, the harder the Brexit the more new trade regulations come in to replace them. So long as there is an organized exit with an agreement in place there will be a transition phase from the old rules to the new rules.
The real fear is if it is a hard Brexit there will be no transition period and the the second and third items above will kick in overnight. For an idea of what this mean for your shoe company, the guidance notes for leather shoe imports is 21 pages long and the notes for the Single Administrative Document, which I believe you will need to complete for each shipment, is 81 pages long.