Brexit to Have Detrimental Effects on Germany-Scotland Trade

The threat of Brexit resulting in a difficult trade between Germany and Scotland is predicted to have a negative impact on the two countries’ trade relations, says BBC. According to Alexander Altmann of the British Chambers of Commerce in Germany, German companies might remove their capitals from Scottish territory should Brexit make trading ‘too difficult.’

German Companies in Scotland

Germany-based companies have some of the biggest foreign capital in Scotland with GBP 8 billion placed in the country for the past 10 years. On the other hand, Scotland is one of Germany’s largest markets when it comes to exports.

BBC reports that German front-runners in business visited Scotland in order to push the argument that the United Kingdom should uphold the freedom of trade even after it leaves the European Union. If free trade ceases to exist, German companies are likely to pull out their investment from the Scots, says Altmann.

Meanwhile, Altmann states that German organizations would prefer that the UK remains in the customs union as it entails that there will be no taxes when transporting goods from members of the customs union to the UK.

Prominent personalities from Germany have also moved to implore the UK to stay in the union including Annagret Kramp-Karrenbauer who is predicted to take on the position of Chancellor in the future.

German Prime Minister Theresa May says that UK’s departure from the EU will lead to an ‘alternative trade deal.’ However, it seems that Germany-based companies do not have an idea on what this alternative deal will be as they are ‘frustrated and almost disappointed’ due to this lack of prospect, says Altmann.

On the other hand, the Scottish government has announced that a positive scenario would be for the UK and the nations in the customs union to forge an agreement even after the Brexit.