According to the German-British Chamber of Commerce and Industry, Brexit will have an impact on the German economy. But the economy is adjusting to the new challenges.
In the opinion of the German economy, Brexit will mean permanently higher costs in trade with the United Kingdom.
“When supply chains will operate just as smoothly as before December 31, 2020, is unclear,” said Ulrich Hoppe, head of the German-British Chamber of Commerce and Industry in London, the German press agency. “That is why many companies have invested in longer-term storage capacity, among other things.” The consequence is a permanent additional effort. In addition, the import clearances cost more.
The economy is adjusting to the new challenges more and more, after the uncertainty was still very high at the beginning of the year. “But it will take longer than originally expected for the systems to run smoothly,” said Hoppe. In principle, he praised the fact that the Brexit trade agreement between Great Britain and the EU had provided “a certain amount of security”. “If such an agreement had not been concluded, there would have been more massive upheavals, not just in commercial transactions.”
Great Britain had also left the EU customs union and the internal market on January 1st. Then there were delivery problems because of new regulations and formalities. In some industries there are new tariffs despite the agreement.
Above all, the automotive industry, which is dependent on international supply and value chains, but also the food industry with perishable goods and hygiene regulations are severely affected by Brexit, as Hoppe said. “The new visa regulations also lead to considerable additional work for all companies that send international employees or are dependent on international talent.”
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
