As a hard shiver will affect the Spanish companies

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The Spanish executive faces the last line of negotiations between the EU and the United Kingdom to avoid a brusque thrill with optimism, but at the same time with the realism that gives it how distant the positions are. For this reason, a series of information days organized by the Secretary of State for Trade, ICEX, Chamber of Commerce of Spain and CEOE, in which all these institutions will try to provide the necessary information so that companies can prepare emergency plans for each of the possible scenarios.

The closest is that of a brexit without agreement, which would mean that the United Kingdom would stop being part of the EU March 30, 2019 and it would become a third country in trade relations with Spain. "It would lead to the setting of customs tariffs, the establishment of customs and non-customs controls, restrictions on the mobility of workers, difficulties in recognizing academic qualifications and even regulatory diversity", he explained. Xiana Mendez, Secretary of State for Trade, during the opening of the day.

This hard brexit scenario could only be avoided if a withdrawal agreement between the two parties is finally agreed. This should be ratified by all member countries so that it enters into force before 30 March 2019. If this withdrawal agreement were approved, a transitional period would enter into force which would allow the continuation of the same relationship between the United Kingdom and the United Kingdom. ; EU. January 1, 2021. "The intention is to speed up negotiations to reach a goal with a withdrawal agreement, we need the agreement to be held in December because we need to have a reasonable timetable to ratify from all countries and so that elections scheduled for the first quarter do not stop the process ", Said Méndez.

But what if finally that agreement does not take place and the United Kingdom ceases to belong to the EU? Rocío Frutos, Deputy Director General of EU Trade Policy, underlined that in this scenario the most affected sector will be the automotive industry, "since 30% of Spanish exports are directed to the UK and the chains of value are highly integrated ". In this way it would be considered a third country in commercial terms, under the aegis of the World Trade Organization, which would mean applying an average rate of 10%. Guillermo Kessler, deputy director general of International Merchandise Trade, noted all goods protected by geographical indications, such as wines, spirits or food, would lose such protection with a bad shot. "They would keep it only if, for example, the trademark had been registered before in the United Kingdom patent office.

Another direct effect of the lack of agreement will be the disappearance in the United Kingdom of the commercial defense actions available to Spanish companies in the face of phenomena such as dumping (sell goods below the market price), the subsidizeds (companies from other countries receive state aid that may erode the competitiveness of Spanish companies) or the safeguard (The unexpected increase in imports that could affect your interests). "The United Kingdom will no longer be obliged to apply trade defense rules and this could affect sectors such as the agri-food sector, where the UK is not in competition with the EU," he stressed. Pedro Pascual, Deputy Director General of Tariff Policy and Trade Defense Instruments.

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