Influences of Brexit

Today there are no indications of economic consequences in Spain. We will have to wait, because there could be high risks if there is a hard Brexit, with losses, or at least limit situations, in the business between both countries, with millions investments from the islands and thousands of jobs that are generated.

The index will be affected in the bilateral relations of the two countries, as we will not be competitors of each other directly. We need to know how our relationships will be as partners.

The ideal thing is to be able to agree on free trade to free both parties from very embarrassing procedures. It won’t be enough, but it will help because the most damaging will not be bureaucracy, but border customs controls, which can cause numerous losses in perishable products. Customs security protocols, on products from third states, will increase the time of reception of goods.

Product inspections, payment of customs fees, customs records … this is what can do more damage to the agro-food sector. Companies must already obtain customs certificates to expedite processes.

To advance steps, GAP has moved to England (London, Birmingham, Liverpool …) to bring positions with our English customers and suppliers.

The increase in investment in logistics and transport will be reflected in exports, whose demand may be decreased. The decrease in the purchasing power of the English people, having a depreciation of the Pound compared to the Euro, reduces business profitability with England. That country will lose the tax benefits it has with the European Union. It is a significant change, as there will be variations and a fixed price cannot be set. The products will follow the same processes of entry into the United Kingdom according to the same rules used for any other country.

Brexit will not bring benefits to Spain, neither in products nor in tourism, which will be affected as well as our country’s investments in England. On the other hand, numerous multinationals will go from English capital to other capitals of Europe in order to remain within the European Union. That also translates into an opportunity to attract jobs, something in which Spain has to be attentive to be able to acquire before France or Germany, which will become direct competitors in picking up those jobs. Brexit has also to serve us to be able to diversify markets and expand to other places.

In recent years, exports to the United Kingdom have grown above average, which should be fought to maintain that growth in sectors such as food. The approach must be different, we have to look at other markets, with planning to adapt to the markets that arise with this new reality.