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‘Trade has collapsed’: Germany sees business with UK slump after Brexit

Germany's exports ticked up in January on robust trade with China, but trade with another key trade partner, Great Britain, plummeted after the Britain left the EU.

'Trade has collapsed': Germany sees business with UK slump after Brexit
Southampton harbour. Photo:Andrew Matthews/DPA

The Brexit fallout has continued to hurt commerce with the United Kingdom, with federal statistics office Destatis recording a 29 percent plunge in German exports across the Channel.

Meanwhile, demand for UK goods in Germany collapsed by more than 56 percent, official data showed Tuesday.

Cross-Channel exporters have had to adapt to new customs requirements from January 1, following Britain’s 2016 decision to leave the European Union.

Firms on both sides have since complained of increased bureaucracy and shipment delays as they grapple with the new rules.

BREXIT: What changes in Germany from January 2021?

“Foreign trade with Britain has collapsed,” said LBBW bank economist Jens-Oliver Niklasch.

Overall, German exports rose 1.4 percent month-on-month in seasonally adjusted figures, Destatis said.

But imports sank as coronavirus shutdowns sapped consumer demand in Europe’s top economy.

Imports slumped 4.7 percent, widening Germany’s closely-watched trade surplus to 22.2 billion euros.

Compared with a year ago, before the pandemic ravaged the global economy, exports fell 8.0 percent in January and imports almost 10 percent.

“Consumer demand fell sharply in January due to a lack of opportunities” as the government kept non-essential shops, leisure and cultural centres closed to rein in the coronavirus,  Niklasch.

But demand for “made in Germany” goods was powered by vital trade partner China, which has recovered faster from the virus shock.

Exports to European Union countries plunged six percent year-on-year, while demand for EU goods within Germany was down by almost the same.

Combined with Germany’s struggles to bring down Covid-19 infections despite months of shutdowns, “the January reading is not an indication of renewed German export strength, but rather an alarm bell for the first quarter.”

Member comments

  1. I live in France and my interest in Germany stems from having learnt the language in 1950s school holidays with a lovely family in Rottach-Egern on the Tegernsee in Bavaria. This experience created an impression in me of German working habits which, in the UK, used to be defined thus: ” with working hours (say) from 08.00 to 17.00 the normal Brit worker entered the building on time and was at his/her desk or bench ready to work hard from 08.15, taking 75 minutes for lunch out of the allocated hour, leaving his/her desk or bench at 16.45 to leave the building right on time at 17.00. Our German worker – you’ve guessed it no doubt – was actually working at his/her desk or bench at 08.00 , taking 45 minutes for lunch, leaving the premises having completed his/her work as soon as possible after 17.00″. Does any of this still apply and If so, has it any relevance to the German “problem” of its noteworthy trade surplus?

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BREXIT

‘It’s their loss’: Italian universities left off UK special study visa list

The UK is missing out by barring highly skilled Italian graduates from accessing a new work visa, Italy's universities minister said on Wednesday.

'It's their loss': Italian universities left off UK special study visa list

Universities and Research Minister Cristina Messa said she was disappointed by the UK’s decision not to allow any graduates of Italian universities access to its ‘High Potential Individual’ work permit.

“They’re losing a big slice of good graduates, who would provide as many high skills…it’s their loss,” Messa said in an interview with news agency Ansa, adding that Italy would petition the UK government to alter its list to include Italian institutions.

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“It’s a system that Britain obviously as a sovereign state can choose to implement, but we as a government can ask (them) to revise the university rankings,” she said.

The High Potential Individual visa, which launches on May 30th, is designed to bring highly skilled workers from the world’s top universities to the UK in order to compensate for its Brexit-induced labour shortage.

Successful applicants do not require a job offer to be allowed into the country but can apply for one after arriving, meaning potential employers won’t have to pay sponsorship fees.

Students sit on the steps of Roma Tre University in Rome.

Students sit on the steps of Roma Tre University in Rome. Photo by TIZIANA FABI / AFP.

The visa is valid for two years for those with bachelor’s and master’s degrees and three years for PhD holders, with the possibility of moving into “other long-term employment routes” that will allow the individual to remain in the country long-term.

READ ALSO: Eight things you should know if you’re planning to study in Italy

Italy isn’t the only European country to have been snubbed by the list, which features a total of 37 global universities for the 2021 graduation year (the scheme is open to students who have graduated in the past five years, with a different list for each graduation year since 2016).

The Swiss Federal Institute of Technology, EPFL Switzerland, Paris Sciences et Lettres, the University of Munich, and Sweden’s Karolinska Institute are the sole European inclusions in the document, which mainly privileges US universities.

Produced by the UK’s Education Ministry, the list is reportedly based on three global rankings: Times Higher Education World University Rankings, the Quacquarelli Symonds World University Rankings, and The Academic Ranking of World Universities.

Messa said she will request that the UK consider using ‘more up-to-date indicators’, without specifying which alternative system she had in mind.

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