British exit from the EU: German-British business calls for easier exchange

On the fourth anniversary of the final Brexit, business representatives are calling for a simplified exchange, for example for schoolchildren or students. “This may not be that important for the economy in the short term, but it is extremely important in the medium and long term,” said the head of the German-British Chamber of Commerce and Industry (AHK) in London, Ulrich Hoppe, to the German Press Agency.

Great Britain left the EU at the end of January 2020 and has no longer been a member of the EU customs union and internal market since 2021. Since Brexit, there have been barriers to the movement of goods and trade between EU members and Great Britain has collapsed. Strict immigration rules also make it difficult to exchange skilled workers, but also students and student trips. Expensive visas are now required.

Exchange as a foundation for generations

“It is precisely the opportunity to study or do an internship in the United Kingdom without major hurdles that has laid a foundation for German-British economic relations for generations, which has now come to a rapid end,” said York-Alexander von Massenbach from the British Chamber of Commerce in Germany (BCCG) of the dpa.

Hoppe emphasized: “We need exchange. It is important that we know each other so that we can trade with each other, do business and work together.” Of course, it would be desirable for bureaucracy such as customs formalities to be reduced or for processes to be made more electronic. “But we also have to further strengthen this cohesion in Europe. And we do that by bringing the next generations together.”

Since Social Democratic Prime Minister Keir Starmer took office in July, the tone between Brussels and London has improved significantly. However, Starmer strictly rules out a British return to the customs union or the internal market. He also rejects a “Youth Mobility Scheme”, which would allow young people under 30 to study or work in Great Britain or the EU visa-free for up to two years.

Starmer was genuinely interested in closer cooperation, said von Massenbach. “But economic relations will at least remain restricted by the red lines that have been established.”

What does the review of the trade agreement bring?

The trade and cooperation agreement that the EU and Great Britain agreed on Christmas Eve 2020 is due to be reviewed in 2025. However, AHK boss Hoppe only expects limited consequences, such as a softer design of the so-called rules of origin. These determine how much of the value of electric cars must come from the UK or EU so that the vehicles can continue to be exported duty-free.

It is expected that Great Britain will adapt to EU standards and norms, for example in the area of ​​chemicals. The EU’s so-called border adjustment mechanism for carbon dioxide (CBAM) is planned to be introduced in Great Britain.

Von Massenbach also hopes that the legal framework for companies will be harmonized. The new tariffs and regulatory requirements since Brexit would particularly affect small and medium-sized companies. “This has negative consequences for competition and ultimately for consumers,” said the partner at the business law firm GSK Stockmann in London.

Where German companies have opportunities in Great Britain

AHK boss Hoppe certainly sees opportunities for German companies in Great Britain. These included renewable energies. The British government has relaxed debt rules to allow more investment in infrastructure. “It’s still an exciting market, and the British always like to buy what the Germans produce. We stand for quality and reliability, especially in the goods trade, which the British also appreciate,” said Hoppe.