Business leaders liken Brexit to ‘taking an important component out of a machine’

“It’s not just that the UK is losing its greatest trade partner, but the EU is losing the most developed financial centre and the fifth largest economy from all EU member states,” stated Kenneth Farrugia, Chief Retail Banking Officer at Bank of Valletta during ‘The Brexit Impact on Business’, the latest webinar hosted by The Gozo Business Chamber and The Europe Direct Information Centre Gozo in collaboration with BOV.

Joseph Borg, President of the Gozo Business Chamber, opened the webinar by stating that Brexit is an exhausting situation for all businesses due to its significant impact on the economy. “It’s like taking an important component out of a machine. Brexit is practically removing a critical cog out of the EU machine, thereafter, changing the trading dynamics between EU members,” he explained.

Referring to Brexit as the theme that dominated both EU and UK politics, Mr Farrugia believes that it can also open up opportunities, as the UK seeks economic partnerships with other regions. Malta, being one of two EU member states that are members of the Commonwealth, should be closely following developments in this regard, he affirmed.

Equally so, the Chief Retail Banking Officer believes that Malta can act as an EU platform for UK financial services businesses wishing to passport their financial products and services to the UK. Malta’s highly developed legal and regulatory framework is one of Malta’s important USPs in this regard. 

Leandro Borg, Head Policy Coordination IMC/EP/External at the Ministry for Foreign and European Affairs, elaborated on the Trade and Cooperation Agreement (TCA) among other coordinated negotiations. “The Trade and Cooperation Agreement will facilitate digital trade through the elimination of unjustified barriers, and by ensuring an open and secure online environment for businesses and consumers alike, while preserving high standards of security and rigorous data protection,” said Mr Borg.

“Business entrepreneurs need to make deep evaluations from the perspectives of importing and exporting goods and services,” stated Alan Mamo, Director Compliance and Systems Customs Department. Mr Mamo focused on Tariffs and Rules of Origin in accordance with the Trade and Cooperation Agreement. “Among all this uncertainty, one certainty is that zero tariff under the EU-UK TCA will occur solely upon the provision of sufficient evidence of the origin of the commodity.”