The fact that the EU-British cooperation agreement will not enter into force at the beginning of 2021 is almost certain. However, there is a possibility that the parties will agree to a technical extension of the transitional period in order to implement the last-minute negotiated agreement – assessed the Polish Economic Institute (PIE).
PIE reminded us that the negotiation of an agreement regulating EU-British economic relations are still ongoing. It also pointed out that although the United Kingdom still benefits from the single European market, the effects of the decision to leave the EU have already had an impact in some areas of Polish-British trade and investment cooperation. Long-term uncertainty has a negative impact on the activity of economic entities.
The Institute informs that since the referendum in Great Britain, the dynamics of Polish trade in goods with the United Kingdom has decreased. In 2015-2019, its share in Polish exports decreased from 6.7 percent to 6 percent. Thus, it has become the third-largest market for Polish goods, giving way to the Czech Republic.
According to PIE, the share in imports decreased from 2.7 percent to 2.3 percent, down from 8th to 11th place. The exports of cars, chocolate products, washing machines, electric cables, cell phones, and cosmetics decreased significantly. Sales of televisions and monitors, seating furniture, and parts for car engines also slowed down. Most commodity declines deepened during the Covid-19 pandemic.