Stricter Border Controls Spark Fears of Trade Barriers among Businesses
Trade restrictions raised concerns among associations due to Dobrindt's proposals for stricter border controls in Germany.
In a worrying turn of events, Alexander Dobrindt, the new Federal Minister of the Interior, is pushing for tighter border controls, a move that has sparked concerns from the business community. Several associations have raised a red flag, sharing with "Handelsblatt" their concerns over potential trade restrictions and challenges for border commuters.
The Association of Foreign Trade demands that any tightening of controls should be temporary, as it believes that the economy can ill-afford onerous border traffic. The crisis brought about by the Coronavirus pandemic has shown that constricted border traffic can put undue strain on the economy. Political efforts to combat irregular migration should, therefore, prioritize keeping the flow of essential supplies and cross-border trade as smooth as possible.
A well-functioning European internal market and the Schengen area are crucial for Germany's strongly internationalized economy. The expert chief of foreign trade at the German Chamber of Industry and Commerce (DIHK), Volker Treier, has pointed out that stricter controls can translate into higher storage costs for companies, making just-in-time deliveries more complex. Furthermore, these measures can bring an additional burden to the economy during economically challenging times.
Treier also caution that stricter controls could impose greater restrictions on border commuters and service providers. Particularly affected sectors include regional retail trade, border gastronomy, and the care and health sector, as they heavily rely on free movement of goods and people.
As Dobrindt's plans for tighter border controls begin to take shape, permanent checks have already started with neighboring countries such as Poland, Austria, and France. The complications in cross-border traffic are already being felt, making the movement of both people and goods more time-consuming and challenging[3]. The German government's stepping up of border controls fits into a broader migration crackdown aligned with the new government's stance on security and immigration [3][4].
However, this approach has raised concerns about compliance with EU regulations and the practical implications for the movement of people and goods across internal Schengen borders[5]. In this light, it appears that Dobrindt's plans for tighter border controls may ultimately do more harm than good to the German economy and its businesses that rely on the fluidity of cross-border movements.
- The business community, warned by several associations, is expressing concerns over employment policies due to potential trade barriers from Stricter Border Controls.
- The Association of Foreign Trade has emphasized that any temporary tightening of controls should avoid onerous border traffic, considering the fragile state of the economy.
- Volker Treier, the expert chief of foreign trade at the German Chamber of Industry and Commerce (DIHK), has highlighted that stricter controls could lead to increased storage costs, making just-in-time deliveries more complex.
- Sectors such as regional retail trade, border gastronomy, and the care and health sector might face greater restrictions on employees and service providers, due to the stricter border controls.
- The compatibility of Dobrindt's tighter border control plans with EU regulations and the practical implications for the movement of people and goods across internal Schengen borders have emerged as significant concerns for the business community and the economy.
