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18 June 2021 / Dr Stephan M Ebner , Susanne Leone
Issue: 7937 / Categories: Features , Profession , Brexit , EU , Commercial
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EU–UK trade: not working in practice?

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Stephan M Ebner & Susanne Leone look at the impact of Brexit on business from a German perspective
  • Bureaucracy surges. German businesses change their supply chains. Small and medium UK businesses hardest hit.

The exit of the UK as the third largest EU member state is an enormous loss for the EU. The UK was actually the second largest net contributor in the EU. As Germany is the largest ‘net payer’, there will probably be additional charges for the country in the wake of Brexit. The joint rebuilding process following the COVID-19 pandemic will increase the German net contribution even more.

German exports to the UK plunged by a third in January 2021 after the Trade and Cooperation Agreement (TCA) came into force. However, exports had already slumped by about 15%, largely due to the pandemic. All in all, since the Brexit referendum in 2016, German exports to the UK have steadily declined. Agricultural exports have been particularly badly hit. This cannot be the long-term goal of both partners.

Imports to Germany

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