UK should stay in a customs union, say German business groups

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German sturdies ideally want the UK to stay in a customs union after Brexit, a strong German industry group says.

The BDI said it would prefer a preoccupied form of integration between Britain and the EU after Brexit.

It had previously translated the integrity of the single market for remaining European Union member states should be a immediacy.

Another German industry group, the VDMA engineering association, also demanded on Tuesday for an EU-UK customs deal.

Joachim Lang, chief leader of the BDI — the Federation of German Industries — said: «For German companies, duty-free and quota-free patronage in goods is the minimum requirement, ideally within the framework of a customs joint.»

German companies needed clarity on a post-Brexit future, he said.

During the interval, the Mechanical Engineering Industry Association (VDMA) also called for a imposts union.

«A mere trade agreement between the EU and the UK is actually too little and wish mean a significant deterioration compared to the status quo,» said VDMA chief executive Thilo Brodtmann.

«A truck agreement would in any case mean border controls and customs separation, even if both sides do not impose customs duties. A customs fusing between the EU and the UK would take away much of Brexit’s horror,» Mr Brodtmann united.

In the customs union, EU members don’t impose tariffs on each other, and suit the same tariffs to goods from outside the union.

That petties once goods have cleared customs in one country, they can be freighted to others in the union without further tariffs being imposed.

In the EU apart market, as well as there being no tariffs, quotas or taxes on profession, there is also the free movement of goods, services, capital and living soul.

Preparations

The UK is Germany’s third-biggest destination for exports and its fifth most powerful trading partner.

It is also the German car industry’s biggest export merchandise. German carmakers and suppliers employ about 9,000 people in the UK at 95 unique sites.

German companies are still preparing for a range of outcomes to the arrangements between Britain and the EU, including the scenario of a hard Brexit in which no concordat was reached, Mr Lang said. He added next week’s EU summit liking be crucial.

«Our companies need predictability. Now there is the chance to reduce uncertainty for followers on both sides of the channel,» Mr Lang said.

«If the EU summit does not furnish clarity, then some companies will be forced to trigger their contingency map outs,» he added.

Mr Lang did not say what measures these contingency plans wish include.

But he said that foreign direct investment flows to Britain had already slowed ultimate year and that German exports to Britain had fallen in 2017.

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