Cyprus companies should prepare for the worst case scenario of a no-deal Brexit, the Cyprus Chamber of Commerce warned on Monday.
In a written statement, chairman Christodoulos Angastiniotis said that an agreement for an orderly exit of the UK from the EU was all the more important for Cyprus because of its close ties in all sectors, and expressed the hope that this will be achieved.
“But at the same time we must prepare for the worst case scenario, that is, of a no deal exit of the United Kingdom in 40 days from now,” he said.
The Cyprus-Britain Business Association, which operates under the umbrella of the Chamber of Commerce, has been working to safeguard the interests of its members and monitoring developments, remaining in constant touch with the Foreign Ministry’s team on Brexit.
Members were asked a month ago to cite the issues raised, their concerns and what measures can be included in an urgent action plan being drawn up by the Foreign Ministry to deal with the situation in the event of a no-deal Brexit.
The Chamber of Commerce is also working to attract UK-based companies that may be looking to move or acquire a new basis in an EU country, Angastionitis said.
The Eurochambers, of which the Cyprus Chamber is a member, have also expressed concern and said they would welcome a postponement of the actual withdrawal date to give time to find a solution.
They noted that a no-deal Brexit would mean that there would be no transitional period and the smooth, custom free trade between the EU and the UK would end overnight, with the UK being treated as a third country.
Repercussions are also expected on transport, VAT, contracts, intellectual property rights, employment and many others, they added.