Brexit: Trade Minister warns of no-deal impact for Czech business

Exporters based in the Czech Republic could be heavily impacted by a no-deal Brexit, according to the Minister for Industry and Trade Karel Havlíček.

Speaking to Novinky, Havlíček warned of the damage the failure of the EU and the UK to get a trade deal could have on Czech companies, with the UK the fifth largest market for Czech exporters.

Currently, the two sides are negotiating and agreed yesterday to extend the deadline on talks, with the Brexit transition period coming to an end on Dec. 31.

The COVID pandemic has damaged economies across the globe with stores and hospitality establishments being closed and travel restricted to various degrees.

Havlíček says this makes it even more important that there are no large tariffs on goods travelling between the two countries.

He added:

"Especially today, when we are trying to keep our economy going through a coronavirus pandemic, it is showing how important it is for our prosperity to maintain open markets and how crucial our integration in the EU is."

Luďek Procházka, director of Gerlach, the largest Czech provider of customs services, told Novinky that he expects delays at the border crossing when the transition period ends, citing customs declarations and a change in how products will be labeled.

The UK voted to leave the European Union in 2016 and signed a withdrawal agreement earlier this year, with a transition period in place until the end of the year.