June 21, 2021

Tourism, automobile, textile and wine Lusos, the most threatened by the "brexit"

Tourism, automobile, textile and wine Lusos, the most threatened by the "brexit"

Tourism, cars, textiles and wine are some of the sectors in Portugal that are most concerned about the impact of "brexit", which threatens to reduce exports to the United Kingdom by up to 26%, according to the Portuguese employers.

With the United Kingdom as the fourth market for sales of Portuguese goods and the first for exports of services, in Portugal it is expected that the British exit from the European Union, especially if it occurs without agreement, leave a mark on its economy.

Portuguese Foreign Minister Augusto Santos Silva announced this week that the government will present its contingency plan on how to deal with the "Brexit" this month, but calculations of how much it could affect its economy have already begun in the country.

A recent report by the Portuguese Business Confederation – the Portuguese employers – estimated that the "brexit" could reduce exports to the United Kingdom by between 15 and 26%, depending on whether an agreement is reached with the European Union.

Sectors such as the automobile, textiles and footwear, the agri-food sector -especially Oporto wine- or computer products would be among the most affected, according to the study, with an impact that in some cases has already begun to be noticed.

Since the referendum in June 2016, the textile sector lost about 50 million euros, as shown by data offered by the Textile and Apparel Association of Portugal (ATP), which admitted to EFE that this figure is expected to increase.

"With the departure of the United Kingdom, and we have to see in which mode, Portuguese textile and clothing exports may lose another 25%, which, accumulated, is a very significant figure," EFE's general director told EFE today. ATP, Paulo Vaz.

In the footwear sector, which continues to break historical records for its increasing acceptance abroad, since 2010 exports have grown in the twenty major markets except the United Kingdom.

There are also no good expectations for Port wine, which has its sixth market in the United Kingdom, since only in the first half of 2018 sales to the British fell by 24.7%, as reflected by the Wine Institute of the United Kingdom. Duero and Porto.

The British market is also the first tourist issuer for Portugal, with about a quarter of all foreigners visiting the country and a special presence in the Algarve (south), the Madeira archipelago and Lisbon.

Therefore, from the employers point out that "the devaluation of the pound against the euro and the consequent decline in the purchasing power of the British also represents a significant risk for Portugal."

The fear of "brexit" among Portuguese hoteliers grew in the last year, according to a study by the Hotel Association of Portugal (AHP), which states that, if in 2017 6% of them aimed to exit the United Kingdom as one of the threats of the sector, that percentage rose to 18% in 2018.

This increase in suspicion is supported by the most up-to-date data from the National Institute of Statistics (INE), which already reflects the effect of "brexit": only in the first ten months of 2018 the arrival of British tourists decreased by 8.7% to the same period of 2017.

Given these figures, the concern reaches the authorities, who have stressed the importance of leaving the United Kingdom in March 2019 is made under an agreement with the European Union.

"We have to ensure that it exists in an orderly manner, through negotiation, through an exit agreement, that does not catch anyone by surprise," António Costa, the prime minister, told EFE in November. be equal to the neighborhood and proximity "that the United Kingdom shares with the European Union.


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