UK & World

Britain will drop out of Germany’s top 10 trading partners

Great Britain GermanyOfficial German statistics, the first top 10 trading partners since 1950, suggest.

In the first six months of this year, German imports of UK goods fell by nearly 11%, according to data from the Federal Bureau of Statistics.

Britain is gone EUBy the end of 2020, a single market that will enable frictionless trade and free movement between member states. But even before that, Germany had already begun to reduce its ties with Britain.

Prior to the 2016 referendum, the United Kingdom was Germany’s fourth most important trader. By the end of this year, the UK is projected to be in 11th place.

According to a December 2020 survey, one-fifth of German companies were restructuring their supply chains to source goods from EU suppliers rather than UK suppliers.

“Because of these, more and more SMEs are quitting trade (in the UK).BrexitMichael Schmidt, chairman of the British Chamber of Commerce in Germany, told Reuters.

The decline in the first half of 2021 was driven by the pull-forward effect before new barriers such as customs control began in January.

“Many companies were expecting problems, so we decided to increase inventories and import,” Schmidt said.

In particular, the agriculture and pharmaceutical sectors have been particularly hit. According to the data, German UK agricultural imports fell by more than 80% in the first six months, while pharmaceutical imports almost halved.

“Many small businesses cannot afford the extra burden of keeping and complying with all introduced customs regulations, such as health certificates for cheese and other perishables,” Schmidt said. I am.

In contrast, exports of German goods to the United Kingdom increased by 2.6%. Schmidt said the new trade reality was more harmful to British companies than to German companies.

“In the UK, the situation is different. For many UK small businesses, Brexit meant losing access to the most important export markets … it’s like shooting their feet. And this explains why German imports from Britain are now falling freely. “

The loss of importance in Britain’s foreign trade is a logical consequence of Brexit. These are probably lasting effects, “said Gabriel Felbermeier, chairman of the Kiel-based Institute for the World Economics (IfW). Reuters..

Additional report by Reuters

Britain will drop out of Germany’s top 10 trading partners

Source link Britain will drop out of Germany’s top 10 trading partners

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