- Are new labelling obligations, tariffs or longer delivery periods to be expected?
During the withdrawal negotiations, the United Kingdom will remain a full member of the EU (except for discussions on the withdrawal) that must observe applicable law. The fundamental freedoms of the European internal market, including freedom of establishment and the free movement of services and capital, will continue to apply during the withdrawal negotiations. And during that period, the United Kingdom must not adopt any rules that are not in line with EU law. Thus there must be no tariffs or any new labelling obligations. As regards border controls, the United Kingdom is not a member of the Schengen Agreement on the abolition of checks at common borders. Therefore, it has never abolished border controls.
Will Brexit impact on trade with the United Kingdom? What will be the consequences for companies exporting products to the United Kingdom?
During the negotiation period, EU provisions will also continue to apply to the business activities of German companies. German firms can export their products to the United Kingdom and import goods from there just like before. The functioning of the internal market is not jeopardised. The United Kingdom currently ranks fifth in terms of Germany's trading partners; the main trading goods include motor vehicles and vehicle parts.
The long-term economic impact after Brexit will depend on what the future relationship between the United Kingdom and the EU will look like.
- What will change for companies that are located or have subsidiaries in the United Kingdom?
Subsidiaries of German companies can do business in the United Kingdom according to the same rules as before.
- Can UK investors still rely on the free movement of capital?
During the withdrawal negotiations, the principle of the free movement of capital continues to apply; this means that payments to and from the United Kingdom continue to be possible (e.g. SEPA transfers). As the United Kingdom is not a member of the eurozone, the exchange from euro to pound is nothing new. German businesses can still invest in the United Kingdom and vice versa. Investment that has already been made is not affected by the outcome of the Brexit referendum.