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Berthold Busch IW-Report No. 23 24. August 2017 The network of production and supply links between British industries, the EU and Germany

If the British government has its way, when the United Kingdom (UK) withdraws from the European Union (EU), it will also leave the internal market and the customs union. This means that trade between the two economic areas will in future be hobbled by non-tariff trade barriers and, if the worst comes to the worst, by actual tariffs.

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The network of production and supply links between British industries, the EU and Germany
Berthold Busch IW-Report No. 23 24. August 2017

The network of production and supply links between British industries, the EU and Germany

IW-Report

German Economic Institute (IW) German Economic Institute (IW)

If the British government has its way, when the United Kingdom (UK) withdraws from the European Union (EU), it will also leave the internal market and the customs union. This means that trade between the two economic areas will in future be hobbled by non-tariff trade barriers and, if the worst comes to the worst, by actual tariffs.

This may not only mean additional costs for end consumers, but would also affect those companies in the UK and the EU that are linked by value chains. In order to find out which industries will be particularly affected, this study examines data from the World Input-Output Database (WIOD) on the exchange of inputs between 56 industries in the UK and the EU on the one hand, and between the United Kingdom and Germany on the other. The majority of inputs exported from the UK to the EU are provided by service industries. In the other direction, the picture looks very different. Eight of the ten EU industries with the largest volume of intermediate products and services exported to the UK are in manufacturing. The inverse coefficients for the exchange of inputs between Germany and the UK are calculated for each sector. This shows how dense the network of links between these industries is. The value regarding German inputs sourced from Britain is the highest for other transport equipment, followed by coke and refined petroleum products and the basic metal industry. In terms of British inputs sourced from Germany, the inverse coefficients suggest that the industries most affected are automobile and chemicals.

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The network of production and supply links between British industries, the EU and Germany
Berthold Busch IW-Report No. 23 24. August 2017

Berthold Busch: The network of production and supply links between British industries, the EU and Germany

IW-Report

German Economic Institute (IW) German Economic Institute (IW)

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Institutional consequences of EU Enlargement
Berthold Busch / Julian Sommer / Samina Sultan IW-Report No. 15 12. March 2024

Institutional consequences of EU Enlargement

At the latest since the Russian war of aggression in Ukraine and the decision to open accession talks with the country, the topic of enlargement has once again become much more important for the European Union (EU).

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Berthold Busch / Samina Sultan IW-Report No. 63 11. December 2023

Fiscal aspects of an EU-enlargement

Following the European Commission's recommendation to open accession negotiations with Ukraine, the European Council will decide on this at its summit in December. This is a historic step that is of great geostrategic importance, particularly in light of the ...

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