Not long after Article 50 was triggered to begin the long, arduous process of the UK leaving the European Union, uncertainty looms large about trading with their continental neighbors. How will trading with former EU colleagues work post-Brexit? When it comes to delivering parcels between the UK and France at least, prices look likely to remain stable.
France is the UK’s fifth biggest trading partner, with imports and exports totalling £4bn in February 2017 alone. Given the two nations’ proximity, a lot of deliveries take place between either side of the English Channel. Uncertainty about how trade will look post-Brexit isn’t having much of an impact on delivery costs though, as trade between the two countries remains brisk.
Shipping between coasts
As it stands, shipping parcels between the UK and France requires little effort. A few clicks online or a brief visit to a delivery office is all it takes, give or take a few pieces of paperwork. There is a school of thought suggesting that, once the UK is outside of the EU, pricing for parcels sent to France may be a little easier to understand. Of course, some companies still prefer methods like the Apex luxury car hire in Marbella for getting packages, people or parcels to and from the UK and France.
The reasoning behind this is that, as it stands, there is a set of laws from the EU governing postal prices. In spite of those laws, the average price paid for sending a typical letter from the UK to the rest of the EU is 28% higher than it is in France. Moving out of the EU may bring about change that restores some sort of balance.
Businesses in the UK might wish to take advantage of the future independent pricing for sending packages abroad, as My Parcel Delivery give information on. Continued growth in ecommerce may see a shift towards more affordable prices in the long term. That, along with the value of exports and imports across the English Channel, should see any increase in delivery costs on hold for a while yet.
From the UK, French businesses are importing goods including pharmaceuticals, electronic equipment, machinery and plastics. Businesses specialising in these products are best placed to benefit, as parcel delivery is their best means of exporting to France.
Major French businesses with UK bases are well-placed to take advantage, as well as SMEs with an eye on the other side of the Channel Tunnel. Energy firm EDF, insurers AXA and car manufacturer Renault will save a small fortune on the cost of sending packages between their British and French bases, from prototype motor parts to proposal documents.
Any business owner visiting their local Post Office may expect to pay a premium for their postage costs. However, a standard package weighing up to 500g – a new tablet, for example – will usually set customers back less than £10. Costs for sending packages further afield are likely to rise, with greater distances a major factor.
As it remains more expensive to deliver parcels further afield – a 500g package to Australia costs just over a third more than it does to France – trading closer to home makes sense. With prices at worst remaining at their current rate, Anglo-French trade is likely to remain strong.
The UK’s ties elsewhere could encourage French businesses to continue trading on these shores post-Brexit, according to the vice-president of the Franco-British Chamber of Commerce. For now, businesses of all sizes with customers in France have little reason to worry.