Czech business associations welcome Brexit draft agreement

Czech business associations welcome the new Brexit draft agreement, thinking it would lower the risk of an economic slowdown if accepted; however, today's resignation of Brexit Secretary Dominic Raab can complicate the negotiations, Czech analysts said.

The situation does not change much for entrepreneurs, as the material presented by British Prime Minister Theresa May still has a general message and does not specify trade conditions, for example, the Czech Chamber of Commerce chief analyst Karina Kubelkova said.

Brexit represents entering uncharted territory and companies will keep feeling uncertain about the future, she said.

Czech companies are already exporting less to Britain, carefully considering their development in the country, because of worries about development after Brexit, Czech Exporters Association deputy chairman Otto Danek told CTK at today's export forum in Mlade Buky.

In the first nine months of this year, Czech exports to Britain decreased by 4.6 percent to Kc153.8bn, Danek said. The volume dropped annually by 6.2 percent in September. Britain is the fifth most important export territory for Czech companies.

The Brexit situation is unclear, Danek said adding that there are still questions about issues like customs duties, exchange rates and Britain's economic performance.

Exporters cannot safeguard against Brexit risks, he said.

It is crucial that May successfully defends the deal, as business needs stability and predictable environment, the Czech Confederation of Industry head Dagmar Kuchtova said.

The situation around Brexit has become more complicated again, which means nothing good for the Czech economy, especially the car industry, Czech Fund analyst Lukas Kovanda said.

Resignation of British cabinet members can pose a bigger risk to jobs in Czechia than possible resignations of Czech ministers or the government's collapse, he said.

A no-deal Brexit would result in up to 16,000 Czech car industry employees losing their job, Kovanda said.

The European Union will hold a special summit to endorse the divorce deal with Britain on November 25.

Source: CTK