Christian Lindner, Germany’s finance minister, has unexpectedly extended an invitation to the United Kingdom to intensify its post-Brexit trade relations with the European Union (EU). Lindner articulated this sentiment in an interview with the BBC, commenting, “If you want to intensify your trade relationship with the EU – call us!”
An official representative for the government confirmed the UK’s interest in exploring “new opportunities” globally. Lindner, who leads the German liberals within the ruling coalition headed by Chancellor Olaf Scholz’s centre-left SPD, also emphasized the German economy and energy supplies remain robust.
During discussions at the fringes of the IMF and World Bank’s annual meetings in Marrakech, Lindner brought up the standing invitation for the UK to take part in future conversations aimed at minimizing trade barriers. He claimed these barriers, or “obstacles in daily business life,” have increased since Brexit, thus preventing UK from reaping perks of the Brexit deal.
As per the statistics from the German Chamber of Industry and Commerce, exports from Germany to the UK have witnessed a 14.1% decline in 2022 compared to 2016 – the year of the Brexit referendum. The UK has now fallen from the third most vital export partner to eighth. If both ways of trade are considered, the UK has fallen out of the top 10 German trade partners list.
Car exports to the UK from the EU have fallen by almost half since Brexit, a decrease amounting to £8.6bn in value. Both the German and British industry have voiced their frustrations over the added bureaucratic red tape for goods exports and worker travel.
A discussion on potentially reducing post-Brexit red tape is viewed as a result of the improved relationship with the EU since the Prime Minister’s Windsor agreement for Northern Ireland trade rules. Despite this, the United Kingdom’s present status as a third party country means that it needs to comply with certain regulatory procedures, such as filling in custom declarations when importing and exporting to the EU, Trade Agreement, or not.
Whilst meetings with UK Chancellor Jeremy Hunt are ongoing, a decision on tariff imposition is expected by year-end. Labour Party leader, Sir Keir Starmer, has expressed a keen interest to renegotiate the current Brexit deal.
Though a formal review of the post-Brexit deal isn’t anticipated until 2026, Christian Lindner’s proposition suggests Germany’s readiness to expedite the process. A Foreign Office spokesperson has confirmed that both the UK and EU are committed to maximizing the benefits of the agreement.
Lindner also refuted any claims of a weak German economy. “The German economy proved its resilience,” he stated. Amid this year’s recession, there had been worries about the impact of the Russian gas supplies cut-off following the invasion of Ukraine. Nevertheless, Lindner reassured European allies regarding Germany’s diverse energy sources and sufficient gas reserves, claiming that Germany had “solved the problem” concerning Russian gas imports.
