imageEconomic Indicators9 hours ago (Feb 19, 2020 04:11AM ET)

BERLIN (Reuters) – German exports to Britain fell for the fourth year running in 2019, according to Statistical Office data seen by Reuters, as the weak pound dampened demand and uncertainty over post-Brexit trade regulations disrupted existing supply chains.

Exports to Germany’s fifth-largest customer fell 4.2% to 78.7 billion euros ($85.00 billion), their lowest level since 2013, even as Germany’s total exports rose 0.8% year-on-year to reach a record high.

“The main cause is the continuing uncertainty over the trade relationship after 2020, when the transition phase is over,” said Martin Braml, a trade expert at the Ifo research institute.

Britain left the European Union at the end of January and has until the of the year to reach a bare-bones trade deal to replace the complete free flow of goods and services that Britain has enjoyed until now as a bloc member.

The future trade relationship is expected to disrupt many of the intricate cross-border supply chains upon which many industries, from automotive to aerospace, depend. A deal that would let that continue is widely thought to be unachievable in the 10 months remaining until the end of the transition phase.

Exports of cars, aircraft and aircraft parts, electronic equipment and pharmaceutical products had fallen, the data showed. Falls in trade within individual industries suggested that supply chains were already being dismantled.

“The best case in my view is that a customs agreement averts the worst fears (at the end of the transition), but we still won’t have a deep and comprehensive trade agreement,” Braml said.

German exports to Britain slumped in run-up to Brexit

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Leave a Reply

Your email address will not be published. Required fields are marked *