- Posted by Marina
The expectation of Brazilian authorities is that the so-called Brexit - leaving the United Kingdom from the European Union - may bring opportunities to Brazil. With the aim of benefiting 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-adviser of the Embassy of Brazil in the United Kingdom, Roberto Doring.
Despite the withdrawal from the European Union, the United Kingdom will undergo a transition period until the end of 2020, in which current travel, business and commercial relations rules will continue to apply. During this period, the two regions will sign new agreements that will govern the relationship between them in several sectors.
“The UK imports 50% of everything it consumes in terms of food and beverages to give you an idea. Of what matters, 60% come from the European Union. A Brexit that really means a reduction in trade flows between the European Union and the United Kingdom opens spaces that can be occupied by countries like Brazil, which are competitive together in this area of food and beverages, in agribusiness in general ”, he highlights.
According to 2018 data from the British government, about 4% of the food consumed by the UK came from South America. The challenges of expanding this market, according to Doring, are great and, in a post-Brexit scenario, will require knowledge of 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, the Brazilian Brexit Observatory, which consolidates information about possible changes that may affect the Brazilian private sector, especially the export segments.