01 August 2018
Oliver Wyman and Clifford Chance published a report on Dutch Businesses faced with Brexit
This Dutch language report follows the collaboration between Clifford Chance and Oliver Wyman in our Red Tape Cost of Brexit report. It is specifically focussed on Dutch businesses and sectors in the Dutch economy which are likely to be affected the most by Brexit. This report investigates the cost to businesses of tariffs and non-tariff barriers should the United Kingdom and European Union revert to a World Trade Organization trading relationship after Brexit.
In 2016, the Netherlands imported €33 billion of goods and services from the UK. Seven percent of its exports, equivalent to €42 billion, go to the UK. The Netherlands could be the second most affected EU economy with a cost of approximately 4,5 billion euros per year, according to the analysis. The steps companies will take to reduce the impact are taken into account.
A quarter of these costs will be shouldered by the food and agriculture sector, and a fifth by the chemicals and plastics sector. As many of these businesses are in the Limburg and Zuid-Holland provinces, these two regions will be affected the most.
Mitigating actions, such as adjusting supply chains to avoid crossing the UK border, can reduce the additional costs faced by Dutch businesses by 10–30 percent. However, on average Brexit will still increase costs and may force businesses to change their pricing strategies, investments choices, and geographical focus.