In contrast to Germany, the UK has no focus on mechanical
engineering. Its proportion of the nominal GDP of the EU-28 is
around 15% (data from2013) , and it accounts for only 7% of me-
chanical engineering sales.
By comparison: Germany’ s correspond-
ing proportion relative to nominal GDP was 21%and its proportion
of mechanical engineering sales was a high 39%. Nevertheless,
based on gross value-added, the British mechanical engineering
sector is one of the major industrial sectors (proportion of manufac-
turing industry: 8. 8%) . However, German producers face compe-
tition in the UK, particularly frominternational competitors – spe-
cifically fromthe USA and China – which use currencies other than
the British pound.
This means that a stronger euro versus the
pound is not particularly disadvantageous in terms of price com-
petitiveness, if the competing company in the British market
comes fromthe USA, and the US dollar is correspondingly strong
against the euro.
However, the conditions negotiated between the
UK and the EU in terms of customs duty and non-tariff trade will
play an important role in the medium term. For these conditions
must not be too negative compared to other (future) bilateral