France does not foresee a halt of exchanges if there is a "brexit" without agreement

France does not foresee a halt of exchanges if there is a "brexit" without agreement

France has alerted its companies that they have to prepare for any "brexit" scenario and that if there is no agreement it will have "significant" costs, although it is not foreseen that trade with the United Kingdom will be interrupted.

"We do not contemplate an interruption of trade," said sources from the Economy Ministry, who said that measures are being taken to prevent collapses in the ports that connect with the United Kingdom and the Eurotunnel, with the hiring of 700 customs agents and the deployment of more health control personnel.

The French Government declares itself "ready to make fluid circulation by sea and land," although it can not guarantee that no truck queues will be formed in the ports on March 30, 2019.

And is that "potentially" the cost of a UK exit without a separation agreement "will be significant," the sources stressed, coinciding with the sixth preparatory meeting of the "Brexit" with employers' organizations and federations of companies that have activity with the United Kingdom. United.

The main message from the French authorities in this forum is that each company must already diagnose the possible consequences of the two major exit scenarios: with agreement and a transition period of 21 months, until December 2020; and without agreement and with abrupt departure in March 2019.

Around 30,000 of the 125,000 export companies in France sell in the United Kingdom, although for the vast majority that market is not among the first in volume of trade.

So far no changes have been noted in the supply flows of companies making purchases in the United Kingdom, but for the future the Ministry of Economy advises a "rational" analysis, taking into account the impacts of "brexit" so that Each company decides if it maintains those relationships.

For example, a document reminds them that British entities will lose after March 2019 the European "financial passport" that allows them to offer services within the EU, so that new contracts can not be established.

Therefore, it is proposed, as a measure of anticipation, to request the transfer of financial contracts to entities domiciled in the European Union.

The French government has not made new estimates on the macroeconomic impact of the "brexit" beyond the already known that the EU could lose from 0.3 to 0.5% of its gross domestic product (GDP) in a horizon of 30 years , and that the United Kingdom will suffer a major fall.


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