In an unexpected move, Christian Lindner, Germany’s finance minister, has proffered an invitation to the United Kingdom to explore new avenues in post-Brexit trade relations with the European Union. Lindner expressed in a BBC interview that direct contact with the EU could potentially strengthen and intensify the existing trade relationship.
A spokesperson for the UK government suggested that the UK would always be receptive to new global opportunities. Simultaneously, Lindner reassured that Germany’s economy and energy supplies continue to remain robust. Lindner, a leading figure amongst German liberals, plays a critical role in the ruling coalition steered by Chancellor Olaf Scholz’s centre-left SPD faction.
In a dialogue held on the sidelines of the annual IMF and World Bank meetings in Marrakech, Lindner talked about a standing invitation for the UK to engage in future negotiations aimed at lowering trade barriers that have emerged. He remarked, “Since Brexit, new obstacles have arisen in the everyday life of German companies. I personally think the United Kingdom is not reaping significant benefits from Brexit.”
The finance minister showcased a sincere appreciation for the United Kingdom, its citizens, and their values, expressing earnest interest in enriching the existing trade relationship further.
The German Chamber of Industry and Commerce reported a 14.1% drop in German merchandise exports to the UK in 2022 compared to the figures from 2016 – the year of the Brexit referendum. In terms of trade ranking, the UK, once the third most crucial export partner for Germany, has now slipped to the eighth position.
Brexit has particularly impacted the automobile sector, halving car exports from the EU to the UK and causing a fall of €10bn (£8.6bn) in value. Both German and British industries have bemoaned the increase in red tape – encompassing not only goods exports but also workers movement.
One potential trade barrier could be the impending imposition of tariffs on specific electric vehicles, currently not covered under the post-Brexit Trade and Co-operation Agreement with the EU. Asked about this concern shared by German automobile manufacturers, Lindner remarked that the UK now falls under the category of a “third-party country”.
This designation implies that businesses in such a country have to adhere to customs declarations, irrespective of the presence of a trade agreement, when importing from and exporting to the EU.
Lindner noted, “The UK chose its path, leading to everyday obstacles. I regret it.” The matter on tariffs is expected to reach a decision by year-end.
Lindner also conversed with his UK counterpart, Chancellor Jeremy Hunt, during the Marrakech meeting. Labour Party leader Sir Keir Starmer has also shown eagerness in renegotiating the Brexit deal for smoother functioning, thereby indicating an improvement in relations with the EU.
A Foreign Office spokesperson reiterated that the current Trade and Cooperation Agreement marks the largest zero-tariff, zero-quota free trade deal worldwide, offering expansive market accessibility across primary service sectors and introducing unique opportunities for UK businesses globally.
While responding to the broader discussions surrounding the German economy, Lindner dismissed any weak shape claims, stressing the resilient nature of the German economy.
Despite entering a recession earlier this year due to rising gas prices and the suspension of Russian supplies following the invasion of Ukraine, Germany has reassured its European allies by diversifying its energy sources and adequately stocking up gas supplies.
