The expectation of Brazilian authorities is that the so-called Brexit – the United Kingdom's departure from the European Union – could bring opportunities to Brazil. With the end of benefits for European countries, other markets may gain space in the region, says a note from “Agência Brasil”.
“Brexit has risks because customs rules change, tariff rules change, but it also has potential opportunities because spaces are opening up in areas such as agriculture, in which we are competitive”, says the minister-counselor at the Brazilian Embassy in the United Kingdom, Robert Doring.
Despite leaving the European Union, the United Kingdom will go through a transition period until the end of 2020, in which the current rules on travel, business and commercial relations will continue to apply. During this period, the two regions will sign new agreements that will govern the relationship between them in various sectors.
“The United Kingdom imports, to give you an idea, 50% of everything it consumes in terms of food and drinks. Of what they import, 60% come from the European Union. A Brexit that actually means a reduction in trade flows between the European Union and the United Kingdom opens up spaces that can be occupied by countries like Brazil, which are competitive together in the area of food and beverages, in agribusiness in general”, he highlights.
According to 2018 data from the British government, around 4% of the food consumed in the United Kingdom came from South America. The challenges of expanding this market, according to Doring, are great and, in a post-Brexit scenario, will require knowledge new forms, new customs rules, among other logistical issues.
To help the Brazilian private sector, the embassy launched the Brazil Brexit Watch platform, in Portuguese, Observatório Brasileiro do Brexit, which consolidates information on possible changes that could affect the Brazilian private sector, especially the exporting segments.
Fyesterday: DATA
