Thursday , March 23 2023

The most spectacular sector in the European Union without breach agreements


Automotive, agricultural, financial services. Many European Union (EU) countries will particularly suffer a divorce between the United Kingdom and its 27 partners, without agreement.

"From now on" there would be no reuse of customs duties and non-recognition of environmental or health claims, such as the establishment of commercial barriers.

The automotive sector is the sector that can cause significant damage. Professionals have warned several times in sectors that employ almost 12.2 million workers in the continent.

About 10% of the European automotive industry goes to the United Kingdom. Vincent Vicard reminds the economist of the Prospective and International Information Center (CEPII).

In addition, UK and EU automotive industries are highly integrated. "Sometimes auto parts cross five or six times across Britain and the continent," said Carsten Brzeski, ING Diba. In the supply chain any dysfunction, as well as the passage of customs, would harm it.

Violent divorce would particularly affect the German automobile industry, which is well positioned in the United Kingdom. "If we stop limiting our supply chain, then we will not be able to continue producing in the UK," said German BMW Stephan Freismuth.

Meanwhile, the chemical sector would be damaged. "Many German, French, Dutch and Belgian companies have production sites" in the UK, says Brzeski. That is why the production chain would be particularly damaging.

In addition, with Shelle's Anglo-Dutch petrochemistry or French LyondellBasell, multinationals also have specific problems related to their government.

Agriculture and fishing are not left. Currently, only 60% of British food needs are covered by their own production, and the rest is mainly imported from France, Belgium, Holland and Ireland.
Customs re-use taxes will make goods more expensive and can be re-introduced in the UK. "We can imagine that Calais's trucks are locked and, waiting for them, they carry milk before reaching Dover," says Brzeski.

The entry of many goods and animals may be prohibited, unless they are registered in the United Kingdom in the list of third countries authorized. This registration can be done quickly, with a condition, former EU member.

Fishing could also be France, Spain, Portugal, Denmark or the Netherlands, whose fleets operate in British waters.

Aeronautics industry would also be among the affected. Airbus manufactures its aircraft in several EU production locations, has made an alarm without a deal with Brexit.

A group of Europe, employing about 15,000 people in the UK directly, is making wings of their devices alerted to the brutal exit of the block as "havoc" and to question the country's investments.

In July, German Tom Enders, Airbus Executive Director, expressed concern about the departure of the European Aviation Safety Agency (EASA) to the United Kingdom. "On the next day of April, thousands of pieces of our aircraft certificates will not be valid, that is, it would be a step in our production," he said.

The sudden fear of sudden air traffic between the United Kingdom and the continent is a particularly sensitive sector.
The European Commission wants to ensure that companies fly to the European territory and the security certification continues to be in the short term. It needs a UK deal.

On the other hand, the financial services also look closely at Brexit. The operator installed in the UK will lose its password (& # 39; financial passport & # 39;) to provide 27-nation block services without presence.

The Commission warns that many operators have made "adaptation and transfer of contracts" that require continental activities.

On Friday, the governor of the Bank of France maintained custody in the pledge sector, because an agreement without divorce indicated the "risk" of the financial stability.

British companies have almost monopoly in this activity, which means accounting for exchanges between financial agents in global markets and ensuring the execution of transactions between all operators.

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