Saturday , July 2 2022

The most exposed sectors in the EU are Brexit without agreement.


Automotive industry, agriculture, financial services. The various sectors of the European Union (EU) will be particularly vulnerable in the event of a divorce without an agreement between the UK and its 27 partners.

As a result, there will be barriers to trade, for example, if customs taxes are not regulated and environmental or health standards are not mutually recognized.

The automotive sector is the sector in which damage can be more important. Professionals have warned several times of the possible devastating effects in a sector in which 12.2 million people work on the continent.

Approximately 10% of the European automotive industry exports go to the UK and reminds Vincent Vicard, an economist at the Center for Prospective and International Information Studies (CEPII).

In addition, the UK and EU's automotive industries are highly integrated. Ve Sometimes, some auto parts are five or six times the boundary between Britain and the continent, altı explains Carsten Brzeski of ING Diba. Any malfunction in the supply chain, such as customs clearance, will damage them.

A brutal divorce will affect the German automobile industry, especially in the UK. . If our supply chain needs to be at the border, we cannot continue production in the UK, em said Stephan Freismuth of the German BMW.

Meanwhile, the chemical industry will also be affected. "Many German, French, Dutch or Belgian companies have production facilities in the UK," says Brzeski. Therefore, the production chain will be particularly affected.

In addition, multinational corporations such as the Anglo-Dutch petrochemical group Shell or Anglo-American Dutch LyondellBasell also face special challenges associated with governance.

Agriculture and fishing would not be left behind. At present, only 60% of British food is met by its own production, while the rest are mainly imported from France, Belgium, the Netherlands and Ireland.
If the customs duties are re-issued, the goods will be more expensive and the UK entry may be delayed. "We can imagine that there are blocked trucks in Calais and they carry sour water before they reach Dover with milk," says Brzeski.

Many goods and animals may be banned unless they are registered in the UK list of authorized third countries. This can be done quickly with conditions for a former EU member.

Fisheries can also be a problem for France, Spain, Portugal, Denmark or the Netherlands whose fleets are usually operating in British territorial waters.

The aviation sector would also be among those affected. Airbus, which produces its aircraft at different production sites across the EU, has sounded an alarm in the case of a Brexit.

In the United Kingdom, the European group, which directly employs approximately 15,000 people whose wings are manufactured, warned that the bloc's abrupt movement would be "catastrophic" and compel it to question its investments in the country.

In July, Airbus Executive Director German Tom Enders expressed the concern of the European Aviation Safety Agency (EASA) to leave the UK. "As of next April, the certificates of thousands of parts of our aircraft will no longer be valid, which may mean a break in our production," he said.

The fear of sudden air traffic between the UK and the continent makes it a particularly sensitive sector.
The European Commission wants companies to fly on European soil and that their safety certificates remain valid for a limited period of time. This needs a UK treaty.

On the other hand, financial services are looking at the events behind Brexit. Operators installed in the United Kingdom will lose their rights (& # 39; fiscal passport & # 39;) to provide their services without being found in 27 countries of the bloc.

The Commission has already congratulated that many operators are doing what is necessary to "arrange and reposition contracts" on the continent.

On Friday, the governor of the Central Bank of France called for continued conservation in the compensation sector. Because divorce from the agreement can "represent a risk" for the stability of the financial system.

British companies have virtually monopoly in this activity, which is to keep the stock exchanges between financial intermediaries in the world markets and ensure the smooth execution of transactions between all operators.

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