18.
08.19
11:22

Brexit: 31st Oct 2019 - Contingency plans for exporters and exporters - Brexit-Stop?

The date for the no-deal Brexit comes scary closer. Not all the powder is fired yet to avoid an unregulated GB exit with chaotic consequences. The GB parliamentarians have a duty and responsibility to spare their own country and its neighbors unnecessary disabilities. On the EU side, one holds on to the negotiated exit contract. In particular, the BackStop clause is non-negotiable on the EU side, but unacceptable for the no-deal Brexit carriers. The GB parliamentary leader and the opposition leader have made proposals to postpone the withdrawal date, but found little support among British parliamentarians. No vote of confidence against the incumbent government, new elections and a renewed referendum are hotly debated. But there is irreconcilable disagreement between and in the parties. And time is running out. From 1 Sep.2019 the parliament comes back from the holidays. To what extent is agricultural trade between the UK and Germany affected? The Federal Republic of Germany has exported on average over the last few years agricultural products valued at € 4.5 billion to Great Britain. That was almost 7% of all German agricultural exports.The focus is on the goods of plant origin with a variety of individual products. Animal products account for about one third of deliveries to the UK. Pork and dairy products play a special role here. German agricultural imports from Great Britain had a value of € 1.3 billion in the past. That was around. 5.7% of German agricultural imports. Among them, specialty cheeses, beef, pork and poultry stand out. The trade exchange has so far taken place under the rules of the free EU internal market without tariffs and additional border controls. The business relations are recorded. Companies have geared their operations to mutual deliveries. With a no-deal Brexit tariffs and corresponding border controls are due from 31 Oct.2019. This will affect the competitiveness of agricultural products differently. In doing so, UK supplies to Germany are burdened much more heavily because the EU customs duties are significantly higher than the WTO tariffs that apply to UK shipments. In the short term one expects significant hindrances in the handling of delivery traffic through border controls and administrative burden.In the affected sectors, inventories are being built up repeatedly in order to bridge a critical period. Due to the high import dependence on food, the United Kingdom is particularly affected. The German agricultural sector is more diversified and has prepared appropriate purchasing and sales opportunities, which hopefully will work if necessary.

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