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German VDA Warns Against Post-Brexit Customs Barriers

Germany's automotive industry association, VDA, cautioned against any European Union imposition of customs barriers following the UK's decision to exit the European Union.

June 28, 2016
German VDA Warns Against Post-Brexit Customs Barriers

Scania trucks from Sweden are among the commercial vehicles imported to Britain from EU member states. Photo: Lee Bristol via Flickr under Creative Commons license.

2 min to read


VDA President Matthias Wissmann is interviewed by a TV reporter. Photo: Sven-Erik Lindstrand.

Germany's automotive industry association, VDA, cautioned against any European Union imposition of customs barriers following the UK's decision to exit the European Union.

"Following British departure from the EU, it will be in nobody's interest to make the international flow of goods more expensive by erecting customs barriers between Britain and the European continent," said VDA President Matthias Wissmann.

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Although the process to actually "de-couple" Britain from the EU may take some time, a majority 52% of the UK voted to exit the EU.

Several EU-member countries, including Germany, have huge interests in the UK automotive industry, including commercial vehicles. The German auto sector is exporting more to Britain than any other country in the world.

While Wissmann's remarks primarily concerned passenger vehicles, Britain imports a great number of commercial vehicles from companies such as Scania and Volvo, both based in EU member state Sweden, and Mercedes, based in Germany. 

Scania trucks from Sweden are among the commercial vehicles imported to Britain from EU member states. Photo: Lee Bristol via Flickr under Creative Commons license.

"The British vote was close," Wissmann said. "But now it is more important than ever for Europe to stand together to avoid a possible domino effect. Every possible measure must be undertaken to enable the continued free movement of goods and services between the UK and the other EU countries," he continued.

"Even if leaving, free exchange of goods with Continental Europe will still be to Britain's net advantage." In central Europe, only Switzerland and Norway are non members of EU.

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The VDA chief also appealed for calm in the face of market volatility following Britain's decision to exit. The first time an EU country will have left the 28-strong club has sent shock waves across the continent.

"Even if many 'experts' are competing to paint the worst possible scenario, now is the time for calmness," added Wissmann. "Brussels must draw the correct conclusions from the vote. Our common Europe must become more attractive to its members. We need more transparency and genuinely better regulation. The EU must not become a community of constant transfer payments or merely a transfer union."

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