Border control plans of Dobrindt causing concerns among associations due to potential trade restrictions in Germany
Alexander Dobrindt's plans for tougher border controls have raised concerns from the German economy. Several associations expressed their worries to Handelsblatt on Wednesday, stating that these controls could limit cross-border trade and impact border workers. The Association of Foreign Trade urges temporary tightening of controls at best.
Volker Treier, head of foreign trade at the German Chamber of Industry and Commerce (DIHK), voiced concerns to Handelsblatt. He stated that the COVID-19 crisis illustrated the economic strain of restricted border traffic. To combat irregular migration, politics should prioritize ensuring that important deliveries and cross-border trade flow smoothly, Treier emphasized. A robust European internal market and the Schengen area are "crucial" for the globally interconnected German economy.
Treier also warned of higher storage costs for companies due to increased control measures. Just-in-time deliveries could become problematic, he added, as an additional burden during economically challenging periods.
DIHK's expert alsoExpresses apprehension about stricter restrictions for border workers and services. He highlighted regional retail, border culinary delights, and healthcare sector as the most vulnerable industries, as they rely heavily on the freedom of movement of goods and people.
In general, stricter border controls could have significant and diverse economic implications for cross-border trade, border commuters, and various German industries. Potential impacts include:
- Increased Delays and Logistics Costs: Tighter controls could lead to longer waiting times for goods coming into Germany, causing supply chain disruptions and increased costs that might impact industries dependent on just-in-time delivery.
- Trade Reductions: Enhanced border checks could discourage entrepreneurs from trading across borders due to cumbersome bureaucratic procedures, leading to reduced trade volumes and economic integration within Europe.
- Increased Commuting Time and Economic Disruption: Stricter controls might adversely affect cross-border workers and students, raising costs, decreasing quality of life, and potentially discouraging cross-border employment, impacting local economies.
- Reduced Consumer Mobility and Supply Chain Disruptions: Tighter border checks could dissuade consumers from crossing borders for shopping or dining, negatively affecting retail and gastronomy industries that depend on border trade. Moreover, supply chain disruptions could result from increased waiting times, leading to stock shortages and increased costs.
- Limited Access to Services and Healthcare: Stricter border controls might affect access to specialized healthcare services available in neighboring countries, impacting patient care and recruitment of medical professionals from neighboring nations.
- Reduced Foreign Investment and Impact on Tourism: Stricter border controls could signal a shift towards a more restrictive economic environment, discouraging foreign investors who value free movement of goods and people within the EU. Moreover, stricter border checks might lower the appeal of neighboring countries as tourist destinations.
While political and security concerns may drive the push for stricter border controls, the potential economic consequences could be substantial and far-reaching for industries and communities reliant on cross-border interaction. Engaging with industry experts and policymakers could be essential to develop strategies that mitigate potential economic disruptions and ensure continued economic prosperity.
- The Association of Foreign Trade urges that stricter border controls should only be temporarily enforced, as they could potentially limit cross-border trade.
- Volker Treier, head of foreign trade at the German Chamber of Industry and Commerce (DIHK), voiced concerns about increased storage costs for companies due to stricter control measures.
- The DIHK's expert also expressed apprehension about stricter restrictions for border workers and services, particularly regarding the regional retail, border culinary delights, and healthcare sector.
- Potential economic implications of stricter border controls include increased delays and logistics costs, trade reductions, increased commuting time and economic disruption, reduced consumer mobility and supply chain disruptions, and limited access to services and healthcare.
- Engaging with industry experts and policymakers could be essential to develop strategies that mitigate potential economic disruptions and ensure continued economic prosperity in a stricter border control environment.