Saturday , June 10 2023

The most exposed sectors in the EU without an agreement to Brexit


Automotive industry, agriculture, financial services. Many sectors & # 39; the European Union (EU) are affected by & # 39; in particular in the case of & # 39; divorce between the UK and its partners 27 without an agreement.

A "no agreement" would mean the introduction of & # 39; barriers to trade with the re-imposition of customs duties and non-reciprocal recognition & # 39; environmental or health standards, for instance.

The automotive industry is the sector where the damage can & # 39; to be more important. The professionals have warned in & # 39; several occasions about the possible disastrous effects in & # 39; sector employs nearly 12.2 million people in the continent.

About 10% of the exports of the European automotive industry go to the UK, points out Vincent VICARD, economist at the Center for Studies & # 39; Outlook and International Information (CEPII).

In addition, the automotive UK and the EU are highly integrated. "Sometimes, some auto parts cross the border between the UK and the continent five or six times", explains Carsten Brzeski of & # 39; ING Diba. Any dysfunction in the supply chain, such as the customs clearance, makes it & # 39; damage.

Divorce affects brutal b & # 39; in particular the German car industry, which is well established in the UK. "If our supply chain should stop at the border, then it will not be able to continue to produce in the UK", said Stephan Freismuth the German BMW.

Meanwhile, the chemical sector will also be affected. "Many German companies, French, Dutch or Belgian to sites & # 39; production" in the UK, says Brzeski. Therefore, the production chain is affected by & # 39; in particular.

Moreover, multinational companies like Anglo-Dutch Shell petrochemical group Anglo American or Dutch LyondellBasell also face specific problems related to their governance.

Agriculture and fisheries nor left behind. Currently, only 60% of British food needs are covered by its own production, the rest is imported mainly from France, Belgium, the Netherlands and Ireland.
If the customs duties are reintroduced, the goods will be more expensive and their entry into the UK can & # 39; delayed. "We can imagine that there are trucks blocked in & # 39; Del Calais and, because of the expectation, milk transporting dissolved before reaching Dover", suggests Brzeski.

Admission & # 39; many products and animals can & # 39; be prohibited, unless it is registered in the UK in the list of & # 39; authorized third countries. This registration can & # 39; is carried out quickly, with conditions, to a member & # 39; before the EU.

Fishing can & # 39; also a problem for France, Spain, Portugal, Denmark or the Netherlands, whose fleets usually operate in British territorial waters.

The aeronautics industry is also among those affected. Airbus, which manufactures aircraft in its air & # 39; different production sites across the EU, already put the alarm in the event & # 39; Brexit without an agreement.

The European group, which directly employing nearly 15,000 people in the UK which manufactures the wings of his means, has already warned that the departure f & # 39; blow from the block will be "catastrophic" and reason to doubt investments in her country.

F & # 39; in July, the German Tom Enders, executive director & # 39; Airbus, expressed concern about leaving the United Kingdom of the European Aviation Safety Agency (EASA). "As from next April, certifications of & # 39; thousands & # 39; Our aircraft pieces no longer valid, and it can & # 39; mean a break in our production", he said.

The fear & # 39; of & # 39; Brake f & # 39; blow of air traffic between the UK and the continent makes it particularly sensitive.
The European Commission must ensure that companies can fly over European territory and that security certificates remain valid for a limited period. This requires UK agreement.

On the other hand, financial services also meet with & # 39; focus on events that emerged from Brexit. Operators installed in the UK lose their right ( "financial passport") to provide their services in the 27-country bloc without being present.

The Commission has already celebrated many operators have done what is necessary to "adjust their contracts and relocate 'activities on the continent.

On Friday, the governor of the Bank of France asked to maintain vigilance in the sector compensation, since divorce without an agreement can & # 39; "jeopardizes" the stability of the financial system.

The British companies have almost a monopoly in & # 39; this activity, which is to maintain the accountability of exchanges between financial agents in world markets and to ensure the proper execution of transactions between all operators.

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