The transition period ends on December 31
European milk giant Arla Foods has reportedly warned consumers about higher prices and empty shelves if Britain doesn't reach a Brexit agreement with the European Union by the end of the year.
That was the scenario that Arla reported in The times Newspaper today (July 13th), if a trade agreement is not concluded duty and border free, December 31st comes, the end of the 12-month transition period after Britain's exit from the EU in late January.
From January 1, 2021, when the country leaves the internal market and the customs union, new trade regulations come into force, ie customs and health controls on imports at the borders.
in the The times Arla, based in Denmark, said retailers and brands "have no choice" but to pass on higher costs to consumers "very early".
Last week, British retailers also warned of the prospect of higher food prices if an agreement is not reached. In this case, the UK retail consortium said consumers should be aware that prices for "ordinary household goods that every consumer has to buy and restock" are likely to rise.