GERMANY WARNING: German exports to UK fall after Brexit -‘The numbers are dramatic’

Trade relationships between Berlin and the UK have declined significantly in the past year as uncertainty surrounding Brexit continues. In 2018, German exports to Britain fell by 11.4 percent to 16.5 million tons upon the previous year. Foreign trade which is considered to be a leading economic indicator also saw imports drop by 15.4 percent to 14.7 million tons.

Christian Kille, director of the Institute for Applied Logistics (IAL) at the University of Würzburg-Schweinfurt, said: “The numbers are dramatic.”

The data provided by IAL along with logistics specialist AEB, who publishes regular analysis of trade flows between Germany and the rest of the world, found other sectors would also face a similar decline and the UK would not be exempt.

Mr Kille added: “The UK is already feeling the consequences of the Brexit decision, without Brexit being implemented.”

The overall decline in foreign exports from the EU’s largest economy is set to have a huge impact on vital chemical and pharmaceutical industries.

Mr Kille said: “Orders in the chemical industry are a good early indicator for the economy. When chemicals decline, it’s because the industry is expecting fewer orders and fewer chemical precursors.”

He added: “If the chemical industry is to live up to its reputation as a leading indicator, significantly greater decreases in foreign trade are to be expected.”

Meanwhile the german vehicle industry has also seen double digit loses amid Brexit and the decline in crude oil and natural gas.

German imports from Britain dropped by 12.1 percent, whilst exports fell by 11.4 percent.

Mike Hawes, head of the automobile association SMMT has attributed the fall to the uncertainty about the future of diesel engines and the weakening demand in Europe and China.

Meanwhile between 2015 and 2018, German exports to the EU increased by 12 percent and imports by 15 percent.

However in that period exports to the UK fell by eight percent and imports dropped to four percent.

Yesterday Theresa May told the House of Commons Liaison Committee she hopes “a deal can be done” with Labour to find a consensus Brexit deal which can command a majority in Parliament.

The Prime Minister acknowledged compromises will need to be made but stopped short of committing to staying in the customs union.

Mrs May said: “We believe that leaving the EU with a negotiated deal is the right thing to do and in order to do that we will need compromise on both sides of the talks.”

She added: “We are fleshing out the details to see how far the Government can move towards us and then we will be able to ascertain how far we are able to move towards them.

“There are certain issues that we think they will be prepared to move on and we might be prepared to support certain positions.

“There are certain areas which we haven’t seen any movement at all.”

(Additional reporting by Monika Pallenberg)

source: express.co.uk