The Saarland exports less to Great Britain. In the past three years, export earnings plummeted by around a third. The IHK Saarland sees the “Brexit issue” as one of the main reasons.
"Although the Brexit has not yet taken place, it already has a significant impact on the economy in Saarland. Exports to Great Britain have already dropped by around a third to less than two billion euros in the past three years. In the middle of the decade, they still reached over 2,7 billion euros. An end to the downward trend is currently not in sight. If there is a “no-deal Brexit”, even more massive slumps in the export business can be expected."
IHK managing director Heino Klingen commented on the forthcoming UK exit from the European Union about the current trade relations between the island and Saarland.
In addition to the vehicle construction, with around 80 percent the largest share of exports to Great Britain contested, the manufacturers of Metal products and Steel builder fewer and fewer orders.
The reason for this is the subdued willingness to invest of the British economy. In addition, the devaluation of the pound means that imports for British companies and consumers are becoming more expensive and fewer products "Made in Saarland" are being imported.
A further decline in Saar exports to Great Britain would mean that the structural weights of the individual countries in the total exports of Saarland changed more and more at the expense of Great Britain. In 2015, the country still had a share of around 18 percent of total exports, compared to just over 12 percent last year. Great Britain lost its position as the most important export destination in Saarland to France in 2017. Not much is missing and Great Britain continues to slide on the scale of the most important customer countries.
IHK supports affected companies and promotes alternative markets
In view of the increasing uncertainty about the further development of trade relations, the information needs of companies is increasing. The IHK has therefore further strengthened its range of advisory services. With new event formats and an online checklist, it helps to identify any need for action by companies. On a special page "Brexit" on the IHK homepage you will also find further current information. "However, our plans also include bringing promising replacement markets closer to those sectors that are at risk of failure, particularly automotive suppliers - such as Korea, Vietnam, Kazakhstan, North Africa and Ukraine“Said Oliver Groll, head of the foreign trade competence center at the IHK.
For all companies: Special page Brexit of the IHK Saarland