German industry warns UK not to expect help in Brexit negotiations

[nitpicker]

https://www.theguardian.com/politics/2017/jul/08/german-industry-warns-uk-over-brexit

German industry warns UK not to expect help in Brexit negotiations

Bosses say the priority is to protect the single market, dashing hopes that exporters will put pressure on Merkel for a favourable trade deal

German industry has warned Britain not to rely on its help in securing a good Brexit deal, in a stark intervention that strikes a blow at the government’s EU departure plans. Senior ministers have repeatedly claimed since the election that Germany’s powerful exporters will exert pressure for a deal handing Britain substantial access to the EU’s markets. However, ministers are told that it is up to the British government to limit the economic fallout from its decision to leave the single market. With the government facing new pressure from business to soften its Brexit plans, German industrialists also warn that Britain will struggle to avoid economic damage as a result of exiting the bloc.

Two of Germany’s biggest industry groups have told the Observer that their main concern during the Brexit process is protecting the single market for the remaining 27 members, even if this harms trade with Britain.

Dieter Kempf, president of the BDI, the federation of German industries, said: “Defending the single market, a key European project, must be the priority for the European Union. Europe must maintain the integrity of the single market and its four freedoms: goods, capital, services, and labour. “It is the responsibility of the British government to limit the damage on both sides of the Channel. Over the coming months, it will be extraordinarily difficult to avert negative effects on British businesses in particular.”

[OnDoutside]

1. I'm delighted to see this sort of statement. They are 100% right,

The other 27 remaining in the EU is the top priority. And I say this even though a tough brexit would hurt us in Ireland more than the other 26. For too long, we in Ireland have been too lazy to get off our collective butt and go out chasing new markets, rather than relying on "the old enemy" England.

A lot of that is down to poor language skills. Its easier to do business in the UK, so there was never a need to learn new languages. Ages 5 to 19 kids are compulsorily taught Irish, a language that is a complete waste unless you are going for public service jobs. The vast majority will never use it again. It would be so much better if they started kids on French or German or Spanish, or even Mandarin at age 5. If there is a hard brexit, I have a feeling they will come to this realisation.

[FBaggins]

2. You can't "go out chasing new markets"

That was part of the rationale of brexit... the EU controls trade policy.

[OnDoutside]

3. Yes, but 28 together is a powerful negotiating block. The UK

Will be "free" to do their own negotiating, but from a weaker position, unless they're dealing with British Guyana or Fiji. Good luck with that.

[FBaggins]

5. Sure... IF they all agree

but if Italy would rather have you Buy tomatoes from them, rather than your new trading partner, then the power of 28 doesn't help you… It hurts

[OnDoutside]

6. That's not how it works. Example of lamb,we can buy lamb from as far away as New Zealand

We're not tied down to a restricted market, but when the EU makes a trade agreement with a non EU country, its available to all.

[FBaggins]

7. It's exactly how it works

All of your examples are WITHIN an existing market (the EU), or with those the EU says you can deal with. You are absolutely tied down to a restricted market. If you can get better/cheaper tomatoes from Australia but Italian producers would rather have you buy them within the EU (I.e., from them)... then you're up a creek.

[OnDoutside]

10. But the single market is so big, the EU has the whip hand.

Do you really think the UK can get a better deal than the EU, with say, Australia ?

Countries gave up a fair bit of sovereignty over negotiations when the EU was enlarged. Its much more difficult for countries to block, than it was before.

[FBaggins]

8. Interesting that you mention N.Z. lamb

There is a quota on lamb exports to the EU... and the UK soaks up about half of that. Ireland could definitely be impacted in the price/availability of that lamb due to brexit... and you can't negotiate to improve the deal if the rest of the EU doesn't go along.

If brexit is "hard" then you could end up with more/cheaper lamb from NZ... but none from Wales... followed by more expensive lamb from NZ and still none from Wales.

[OnDoutside]

9. We already have cheap lamb from nz. There really isn't a call

On Welsh lamb in Ireland. The NZ lamb deal is with the EU not the UK. The major impact on British food into Ireland, is the supermarkets like tesco and Marks and Spencer. That will be an interesting one to watch. On top, of course, of Irish produce into the UK, and that's where we need to get out to continental customers. Ireland has been too lazy for too long.

[OnDoutside]

4. I see were referring to Ireland, what I mean by chasing new markets

was within the EU, which we are allowed do as part of the single market.