Alexander Dobrindt's Tightened Border Controls Raise Concerns for Economy and Trade
Concerns Arise over Potential Trade Barriers Due to Dobrindt's Plans for stricter Border Controls in Germany
Several trade associations, having expressed their concerns to the "Handelsblatt," fear that Alexander Dobrindt's stricter border controls could cause hurdles in cross-border trade and for commuters. The Association of Foreign Trade pleads for targeted, temporary tightening of controls.
Volker Treier, the chief economist for foreign trade at the German Chamber of Industry and Commerce (DIHK), points out that even during the Corona crisis, restricted border traffic has proven to burden the economy. In the pursuit of reducing irregular migration, Treier underlines the importance of ensuring that crucial deliveries and cross-border trade proceed without interruption. A seamlessly functioning European internal market and the Schengen area are "crucial" for the highly internationalized German economy.
Treier articulates that enhanced controls would imply higher storage costs for companies, and just-in-time deliveries would become more complicated. Such extra burdens on the economy, he says, are undesirable during economically tough times.
He also warns of the potential for more limitations for commuters and service providers. In particular, he mentions regional retail trade, border gastronomy, and the care and health sector, which are heavily dependent on free movement of goods and people.
According to enrichment data, stricter border controls can result in delays and increased bureaucracy for travelers and goods, creating bottlenecks and affecting the consistent flow of people and goods. Additionally, these controls might increase transportation costs for industries that rely on just-in-time delivery.
Border gastronomy and retailers in the vicinity of borders could witness a drop in footfall due to longer wait times and reduced cross-border traffic, jeopardizing their income. The care and health sectors, which might rely upon cross-border workers for staffing, could grapple with labor shortages or increased operational costs due to stringent border controls reducing the ease of commuting for care workers.
In essence, stricter border controls as proposed by Alexander Dobrindt are likely to slow cross-border movement, adversely affect border area retail and gastronomy businesses, complicate commuting for workers in care and health sectors, and increase costs and delays in trade. These consequences represent a considerable economic consideration in balancing immigration control with regional economic integration in Europe.
[1] ntv.de, AFP[2] Data from Federación Empresarial Española (FEDE) and Bundesverband Deutscher Arbeitgeberverbände (BDA)[4] The World Bank - European Integration Group, Infrastructure and Urban Development Department and Trade & Competitiveness Global Practice
- The economic implications of Alexander Dobrindt's proposed stricter border controls have raised concerns among trade associations, such as the Association of Foreign Trade, who fear these controls could create barriers in cross-border trade and for commuters.
- Volker Treier, the chief economist for foreign trade at the German Chamber of Industry and Commerce (DIHK), has emphasized that even during the Corona crisis, restricted border traffic has proven detrimental to the economy.
- Treier warns that enhanced border controls would lead to higher storage costs for companies, making just-in-time deliveries more complicated, which is undesirable during economically challenging times.
- Border gastronomy and retailers in border regions could experience a decline in patronage due to prolonged wait times and reduced cross-border traffic, potentially jeopardizing their income.
- Stricter border controls could impact the care and health sectors by creating labor shortages or increased operational costs due to stringent border controls reducing the ease of cross-border commuting for care workers.
