Post-Brexit Trade Deals are Changing Procurement—Are You Ready for the Impact?
As of October 2024, the UK continues to forge its path in global trade after Brexit, with significant implications for procurement professionals. While the UK remains outside the EU’s Single Market and Customs Union, ongoing trade negotiations are set to shape the future landscape of procurement, supply chains, and international trade in the UK.
New Trade Deals in Progress
The UK government has made strides in securing key trade agreements with major global economies. Trade deals with countries like Australia, Japan, and Mexico—through the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)—are set to enhance opportunities for UK businesses. These agreements reduce tariffs and trade barriers, improving market access for industries such as automotive, pharmaceuticals, and digital services.
Additionally, the UK has made headway in negotiating free trade agreements with India and the Gulf Cooperation Council (GCC), further expanding its global reach. These deals are expected to bring benefits to sectors like agriculture, manufacturing, and technology
For procurement professionals, these deals mean re-evaluating supply chains, developing relationships with new suppliers, and adjusting procurement strategies to align with new international standards.
Evolving Regulatory Landscape
Post-Brexit, the UK government has opted not to pursue formal EU re-entry. Instead, the focus is on negotiating trade deals with countries outside of Europe while fostering strong economic relationships with non-EU markets. Negotiations with the US and Canada are ongoing, promising significant impacts for cross-border procurement
For UK procurement professionals, this presents a dual challenge. On one hand, businesses can access new markets and gain opportunities to secure better deals from non-EU countries. On the other, the need for compliance with varied regulations from different regions means that procurement strategies will require careful planning, enhanced due diligence, and risk management
Strategic Procurement in a Changing World
One of the key benefits for procurement professionals in the new trade landscape is the potential to diversify supply chains. With access to new markets through trade deals, businesses have the chance to strengthen supplier resilience by sourcing from multiple regions. This reduces dependence on single suppliers and mitigates risks such as supply chain disruptions and cost increases caused by geopolitical tensions .
The UK’s regulatory changes and trade policies will also play a significant role in shaping procurement strategies moving forward. The government has expressed its desire to maintain strong trade ties with the EU, especially in areas such as food safety and digital services, while simultaneously pursuing an independent regulatory framework
Technology and Innovation: Adapting to the New Normal
Digital solutions like artificial intelligence, blockchain, and data analytics are becoming essential tools for procurement professionals navigating the post-Brexit world. With new markets opening up, leveraging these technologies will be critical for managing compliance, monitoring regulations, and maintaining cost efficiency.
For example, blockchain technology could play a pivotal role in improving transparency and traceability in global supply chains, especially as procurement becomes more complex and diversified
AI-powered analytics are also enabling procurement teams to predict risks, evaluate suppliers more effectively, and optimize contract management in this fast-evolving landscape
Post-Brexit trade deals represent both challenges and opportunities for procurement professionals in the UK. With new agreements on the horizon and a changing regulatory environment, procurement strategies must become more agile and forward-thinking. By embracing technology, diversifying supply chains, and understanding the intricacies of new trade agreements, procurement leaders can navigate this complex landscape successfully.
Stay connected with Langley Search and Interim, a specialist recruitment agency for procurement professionals, to remain updated on these changes and how they will impact procurement careers.