Czech businesses call for considerable progress in Brexit negotiations

The deadline for Brexit is slowly but steadily approaching and the negotiations are entering a crucial phase. The October summit of the European Council should be the decisive point in the talks that should bring more clarity about the future relationships. There is still no decision on the transition period and as the date of the summit approaches, the signals are still not very clear about which way the negotiations will go. With less than six months until the deadline businesses are becoming nervous.

Great Britain is a very important market for Czech businesses. It is the fourth largest export market within the EU after Germany, Slovakia and Poland, and the tenth largest imports market. According to recent studies, the Czech Republic would be the fifth most severely hit EU country in the event of a “hard” Brexit. That’s why Czech businesses are urging the chief negotiators to avoid a “hard” Brexit at all costs. One of the priorities of the Czech government has been to safeguard the rights of EU citizens in Great Britain after Brexit. There are around 100 000 Czech citizens living and working in Great Britain and according to the British Prime Minister, Theresa May, the conditions for Czech citizens shouldn’t change after Brexit. Hopefully, the negotiators will do their best to also avoid any potential negative economic impacts of Brexit.

Those could be very severe for the Czech Republic. Not surprisingly, the biggest negative impact would be on the automotive sector, automotive components and other engineering machines. Even with a deal in March and a transition period being applicable until the end of 2020, it is clear that eventually the relationship between the EU and Great Britain will have to change as it will become an external country. However, Czech businesses hope that the negotiators will find the best possible solution that will bring clarity and much needed legal certainty for businesses both in the EU and in Great Britain.