Morgan Newfield reports German industry seeks customs union for Britain post-Brexit as concerns over trade friction grow.
Press Release – updated: Mar 14, 2018 09:00 CET
TAIPEI, Taiwan, March 14, 2018 – Morgan Newfield analysts reported that the German BDI industry body has called for the European Union to reach a customs union agreement with the United Kingdom to minimize the effect on trade after Britain leaves the EU.
BDI is the largest industry lobby in Germany, and it has strong links to Chancellor Angela Merkel’s Democrats. BDI stated that Europe should aim for a comprehensive customs union after Britain’s CBI business lobby called for the same earlier this year.
However, British Prime Minister Theresa May has stated that remaining a member of the world’s largest single market and the European Customs Union is not an option. May has emphasized that the UK wants to be able to negotiate its trade details independently.
Morgan Newfield analysts say that the UK wants to reach a custom trade deal agreement with the European Union. BDI managing director, Joachim Lang believes that while a trade agreement is a better option from a political viewpoint, the notion of a customs union should not be ruled out because a free trade agreement will not be in the best interests of the economy.
With the UK being the second largest export market for German automakers, German industry is growing increasingly concerned about potential tensions in a trade with the UK after Brexit.
A recent Morgan Newfield report revealed that businesses in Britain and the European Union could be liable for an additional 58 billion pounds in yearly fees if Britain leaves the European Union without a deal in March next year.
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Source: Morgan Newfield