With Britain withdrawing from European Union (ES) This year, French entrepreneurs are also taking part, some of whom are considering stopping doing business with the British because of the new bureaucracy.
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Although at the end of last year Britain and the European Commission reached an agreement on trade between the two sides after the British decision to leave the European Union, this year, according to The Financial Times, a number of businessmen on both sides complain about the obstacles created by the new regime. For example, representatives of the French binder company Sealock have indicated that the delivery of the materials they ordered from Great Britain was delayed for seven weeks.
“Such delays are unthinkable for a medium-sized entrepreneur like us,” Jean-Barky, the company’s chief executive, told The Financial Times, noting that he might have to change the binder composition to order the necessary substances from Germany or another European country. .
Data compiled by France show that in January, when it came into force “Brexi“As agreed in the agreement, imports from Great Britain fell by 22% compared to the second half of 2020. In February, however, the picture looked more optimistic and the decline was only 2% compared to last year. However, French exports to Great Britain have fallen by 16%. %.
“In the long run, we expect the impact on trade to be significant,” said economist Vincent Vikard. While experts point out that the global pandemic has certainly had a negative impact on trade, it is pointed out that the bureaucracy and increased transit costs associated with Brexit are also to blame.
Wine producers in the Bordeaux area have reported rising prices for export services as hauliers return from the UK more empty-handed, making the service more expensive.
France’s largest employers’ federation, Medef, has warned that a number of local entrepreneurs are planning to withdraw from the UK. Small and medium-sized enterprises are particularly hard hit.
It should be noted that British companies have also suffered and the British Chamber of Commerce has estimated that in the first quarter of this year, 41% of companies whose business is related to exports have experienced a decline in profits. For comparison, in the last months of last year, 38% of companies faced it. On the other hand, 20%, which is 2% less than at the end of 2020, have reported increasing profits.